December 2014

Name: December 2014
Creator: FRASER
Keywords: Economic Data, Fiscal Policy, Finance, Public

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BULLETIN DECEMBER 2014 FEATURES Profile of the Economy Financial Operations International Statistics Special Reports Produced and Published by Department of the Treasury Bureau of the Fiscal Service BULLETIN The Treasury Bulletin is for sale by the Superintendent of Documents U S Government Printing Office Washington D C The Treasury Bulletin is issued quarterly in March June September and December by the Bureau of the Fiscal Service Governmentwide Accounting Budget Reports Division Statistical data is compiled from sources within Treasury departmental offices and bureaus as well as various other Federal program agencies Readers can contact the publication staff at or to inquire about any of the published information Suggestions are welcome The publication staff can also be reached by electronic mail treasury bulletin fiscal treasury gov Internet service subscribers can access the Treasury Bulletin in Microsoft Word or PDF format through the Bureau of the Fiscal Service s home page www fiscal treasury gov Table of Contents FINANCIAL OPERATIONS PROFILE OF THE ECONOMY Analysis Summary of Economic Indicators FEDERAL FISCAL OPERATIONS Introduction Federal Fiscal Operations Analysis Budget Results and Financing of the U S Government and Fourth Quarter Receipts by Source FFO A Chart Monthly Receipts and Outlays FFO B Chart Budget Receipts by Source FFO 1 Summary of Fiscal Operations FFO 2 On Budget and Off Budget Receipts by Source FFO 3 On Budget and Off Budget Outlays by Agency FFO 4 Summary of U S Government Receipts by Source and Outlays by Agency FFO 5 Internal Revenue Receipts by State FFO 6 Customs and Border Protection Collection of Duties Taxes and Fees by Districts and Ports ACCOUNT OF THE U S TREASURY Introduction Source and Availability of the Balance in the Account of the U S Treasury UST 1 Elements of Change in Federal Reserve and Tax and Loan Note Account Balances FEDERAL DEBT Introduction Federal Debt FD 1 Summary of Federal Debt FD 2 Debt Held by the Public FD 3 Government Account Series FD 4 Interest Bearing Securities Issued by Government Agencies FD 5 Maturity Distribution and Average Length of Marketable Interest Bearing Public Debt Held by Private Investors FD 6 Debt Subject to Statutory Limit FD 7 Treasury Holdings of Securities Issued by Government Corporations and Other Agencies PUBLIC DEBT OPERATIONS Introduction Public Debt Operations TREASURY FINANCING PDO 1 Offerings of Regular Weekly Treasury Bills PDO 2 Offerings of Marketable Securities Other than Regular Weekly Treasury Bills OWNERSHIP OF FEDERAL SECURITIES Introduction Ownership of Federal Securities OFS 1 Distribution of Federal Securities by Class of Investors and Type of Issues OFS 2 Estimated Ownership of U S Treasury Securities U S CURRENCY AND COIN OUTSTANDING AND IN CIRCULATION Introduction U S Currency and Coin Outstanding and in Circulation USCC 1 Amounts Outstanding and in Circulation Currency Coins USCC 2 Amounts Outstanding and in Circulation by Denomination Per Capita Comparative Totals December 2014 IV Table of Contents INTERNATIONAL STATISTICS FOREIGN CURRENCY POSITIONS Introduction Foreign Currency Positions SECTION I Canadian Dollar Positions FCP I 1 Weekly Report of Major Market Participants FCP I 2 Monthly Report of Major Market Participants FCP I 3 Quarterly Report of Large Market Participants SECTION II Japanese Yen Positions FCP II 1 Weekly Report of Major Market Participants FCP II 2 Monthly Report of Major Market Participants FCP II 3 Quarterly Report of Large Market Participants SECTION III Swiss Franc Positions FCP III 1 Weekly Report of Major Market Participants FCP III 2 Monthly Report of Major Market Participants FCP III 3 Quarterly Report of Large Market Participants SECTION IV Sterling Positions FCP IV 1 Weekly Report of Major Market Participants FCP IV 2 Monthly Report of Major Market Participants FCP IV 3 Quarterly Report of Large Market Participants SECTION V U S Dollar Positions FCP V 1 Weekly Report of Major Market Participants FCP V 2 Monthly Report of Major Market Participants FCP V 3 Quarterly Report of Large Market Participants SECTION VI Euro Positions FCP VI 1 Weekly Report of Major Market Participants FCP VI 2 Monthly Report of Major Market Participants FCP VI 3 Quarterly Report of Large Market Participants EXCHANGE STABILIZATION FUND Introduction Exchange Stabilization Fund ESF 1 Balance Sheet ESF 2 Income and Expense SPECIAL REPORTS TRUST FUNDS Introduction Highway Trust Fund TF 6A Highway Trust Fund Highway Account Mass Transit Account RESEARCH PAPER SERIES GLOSSARY ORDER FORM FOR TREASURY PUBLICATIONS Inside back cover NOTES Definitions for words shown in italics can be found in the glossary Figures may not add to totals because of rounding December 2014 V Nonquarterly Tables and Reports For the convenience of the Treasury Bulletin user nonquarterly tables and reports are listed below along with the issues in which they appear March Issues June Sept Dec Federal Fiscal Operations FFO 5 Internal Revenue Receipts by State FFO 6 Customs and Border Protection Collection of Duties Taxes and Fees by Districts and Ports Special Reports Financial Report of the United States Government excerpt Trust Fund Reports Agriculture Disaster Relief Trust Fund Airport and Airway Trust Fund Black Lung Disability Trust Fund Harbor Maintenance Trust Fund Hazardous Substance Superfund Highway Trust Fund Inland Waterways Trust Fund Leaking Underground Storage Tank Trust Fund Nuclear Waste Fund Oil Spill Liability Trust Fund Reforestation Trust Fund Sport Fish Restoration and Boating Trust Fund Uranium Enrichment Decontamination and Decommissioning Fund Vaccine Injury Compensation Trust Fund Wool Research Development and Promotion Trust Fund December 2014 OPERATIONS Profile of the Economy Federal Fiscal Operations Account of the U S Treasury Federal Debt Public Debt Operations Ownership of Federal Securities U S Currency and Coin Outstanding and in Circulation 3 Profile of the Economy Source Office of Macroeconomic Analysis As of November Introduction Economic conditions continued to strengthen in the third quarter of this year with real gross domestic product GDP expanding solidly following a very rapid pace of growth in the second quarter Although the overall pace of growth slowed a bit the composition of growth was favorable with real final sales rising 4 2 percent in the third quarter compared with a 3 2 percent gain in the second quarter The pace of job creation has picked up considerably this year and as of October 2014 the economy had added 10 6 million private sector jobs since job growth resumed in early 2010 The unemployment rate stood at 5 8 percent 4 2 percentage points below the October 2009 peak of 10 0 percent Activity in the housing sector slowed beginning in the summer of 2013 as home prices and mortgage rates moved higher but sales and construction have picked up somewhat in recent months Although the Administration has taken a number of steps in recent years to promote stronger economic growth in the near term it has also pursued deficit reduction measures in the interests of the nation s longer term growth Since 2011 the budget deficit has been reduced by roughly 4 trillion including the deep cuts imposed by sequestration The federal budget deficit has fallen from a peak of 9 8 percent of GDP in fiscal year 2009 to 2 8 percent in fiscal year 2014 and is expected to fall further in the coming fiscal years At its most recent meeting in October 2014 the Federal Reserve s Federal Open Market Committee FOMC announced it would maintain the target range for the federal funds rate as well as existing programs for reinvestment of principal payments and roll overs of maturing Treasuries at auction However it also announced the conclusion of its asset purchase program at the end of October 2014 Economic Growth Since the current expansion began in mid 2009 the economy has grown by 12 5 percent and as of the third quarter of 2014 real GDP was 7 7 percent above its level at the end of 2007 when the recession began According to the advance estimate real GDP rose 3 5 percent at an annual rate during the third quarter of 2014 after advancing by 4 6 percent in the second quarter Growth of consumer spending business fixed investment and residential investment slowed Private inventory investment declined posing a drag on economic activity after making a large positive contribution in the second quarter Export growth also slowed but that was more than offset by a drop in imports As a result net exports added substantially to growth in the third quarter after posing a drag in the first two quarters of the year Government outlays also made a large positive contribution to GDP growth primarily reflecting a surge in defense spending Consensus forecasts currently put real GDP growth in the fourth quarter of 2014 at a 3 0 percent annual rate Private domestic final demand consumption plus private fixed investment considered a better measure of underlying private demand because it subtracts out government spending inventory movements and net exports grew at a 2 3 percent annual rate in the third quarter decelerating from the second quarter s 3 8 percent pace Real personal consumption expenditures which account for about 70 percent of GDP rose at a 1 8 percent annual rate in the third quarter also slowing from the 2 5 percent rise in the second quarter Purchases of goods grew more slowly in the third quarter while consumption of services picked up slightly Altogether consumption added 1 2 percentage points to real GDP growth in the latest quarter Residential investment mostly residential homebuilding advanced 1 8 percent in the third quarter following a surge of 8 8 percent in the second quarter although the advances in the second and third quarters were less than the combined drop of 12 4 percent in the previous two quarters Residential activity added less than 0 1 percentage point to third quarter real GDP growth The housing sector has been slowing since mid 2013 although prices continued to rise albeit at a slower rate recently Housing starts reached a 6 year high in November 2013 but have since eased In September single family housing starts stood at 646 000 units at an annual rate The level of single family starts remains nearly 65 percent below the January 2006 peak and well below the 1 1 million unit average observed from 1980 to 2004 Sales of new single December PROFILE OF THE ECONOMY family homes have increased 17 percent over the past year to 467 000 at an annual rate in September 2014 However sales of all existing homes 94 percent of all home sales fell 1 7 percent over the past year to just under 5 2 million at an annual rate in September 2014 The inventory of homes available for sale has started to rise but remains lean by historical standards A slowing in the pace of sales had pushed inventory sales ratios up somewhat over the summer but more recently ratios have declined again Relative to sales there was a 5 3 month supply of new homes on the market in September and a 5 3 month supply of existing homes for sale House prices continue to rise albeit at a slower pace in recent months The FHFA purchase only home price index rose 4 7 percent over the year ending in August 2014 down from a peak of 8 4 percent in July 2013 The Standard and Poor s S P Case Shiller composite 20city home price index rose 5 6 percent over the year ending in August down from a peak of 13 7 in November 2013 Other house price measures show a similar pattern of decelerating home price appreciation The fourth quarter of 2014 Pulsenomics Zillow Home Price Expectations Survey suggests home price appreciation will moderate through the end of 2014 and slow further in 2015 Nonresidential fixed investment about 12 percent of GDP grew 5 5 percent in the third quarter after rising 9 7 percent in the second quarter of 2014 The deceleration in business fixed investment spending primarily reflected slower growth in outlays for structures which rose 3 8 percent in the third quarter compared with a 12 6 percent increase in the second quarter Spending on equipment was still solid but also slowed from 11 2 percent in the second quarter to 7 2 percent in the third quarter Growth of investment in intellectual property products including outlays for software research and development and entertainment literary and artistic originals moderated to 4 2 percent in the third quarter from 5 5 percent in the second quarter Nonresidential fixed investment added 0 7 percentage point to real GDP growth in the third quarter of 2014 compared with a 1 2 percentage point contribution in the second quarter The change in private inventories subtracted 0 6 percentage point from real GDP growth in the third quarter after adding 1 4 percentage points in the second quarter Exports account for about 13 percent of GDP while imports which are subtracted from total domestic spending to calculate GDP account for about 17 percent In the third quarter of 2014 exports rose 7 8 percent and imports declined by 1 7 percent With exports rising more than imports the net export deficit narrowed Net exports added 1 3 percentage points to GDP growth in the third quarter In the prior two quarters net exports were a drag on economic activity subtracting 1 7 percentage points from GDP growth in the first quarter and 0 3 percentage point in the second quarter December 2014 The current account balance reflecting international trade in goods and services investment income flows and unilateral transfers has been in deficit almost continuously since the early 1980s and in 2006 reached a record 807 billion equivalent to 5 8 percent of GDP The current account deficit narrowed sharply during the recession and in 2009 stood at 381 billion 2 6 percent of GDP It has widened somewhat since then but remains well below its 2006 peak As of the second quarter of this year the current account deficit stood at 394 billion or 2 3 percent of GDP Government purchases which account for close to 20 percent of GDP advanced 4 6 percent at an annual rate in the third quarter of 2014 accelerating from a 1 7 percent pace in the second quarter Although government outlays for consumption and investment have fallen in 14 of the past 20 quarters they have risen in four of the most recent six quarters mainly due to increased spending at the state and local level Following seven straight quarters of decline Federal spending jumped 10 0 percent in the third quarter reflecting a surge in defense spending State and local government spending rose 1 3 percent in the third quarter after rising 3 4 percent in the second quarter State and local government spending declined nearly continuously from late 2009 through 2012 the longest period of falling expenditures at this level of government in postwar history but has since risen fairly steadily with the exception of a 1 3 percent decline in the first quarter of 2014 Labor Markets During the recession from December 2007 through June 2009 the economy lost 7 6 million private sector jobs Job losses continued even after the recovery began but in February 2010 nonfarm payrolls began to rise again Since then through October 2014 total nonfarm payroll employment has grown by about 10 0 million In the private sector employment has increased by 10 6 million during the same period Job losses during the recession were spread broadly across most sectors but with the resumption of job growth all of these sectors have added jobs Since the labor market recovery began in early 2010 payrolls in professional and business services have risen by almost 2 9 million and the leisure and hospitality industries employment has increased by just over 1 8 million through October 2014 Although growth in manufacturing payrolls has fluctuated in the last several months payrolls in this sector have expanded by 728 000 since early 2010 A few sectors added jobs throughout the recession and still continue to hire new workers since early 2010 the health care and social assistance sector has added 1 6 million jobs On a net basis the government sector also added workers to payrolls during the recession although payrolls began declining late in 2008 and trended lower for a few years thereafter In the past several months progress in adding back jobs has been more uneven From February 2010 through October 2014 PROFILE OF THE ECONOMY the government sector s job losses totaled Over that same period State and local job losses numbered including 313 000 local government jobs of which 233 000 were in local education Thus far in 2014 State and local governments have added a net 85 000 payroll jobs including nearly 83 000 jobs in local education The unemployment rate peaked at 10 0 percent in October 2009 a 26 year high and was 5 6 percentage points above the May 2007 low of 4 4 percent After October 2009 the unemployment rate trended lower reaching 5 8 percent in October 2014 its lowest level since July 2008 Broader measures of unemployment have also declined The broadest measure which includes workers who are underemployed and those who are only marginally attached to the labor force the U 6 unemployment rate reached a record high of 17 2 percent in early 2010 series dates from 1994 more than double the low of 7 9 percent reached in December 2006 This measure stood at 11 5 percent in October 2014 The percentage of the unemployed who have been out of work for 27 weeks or more peaked at an all time high of 45 3 percent in April 2010 This measure dropped to a 5 year low of 31 2 percent in August 2014 before edging back up to 32 0 percent in October 2014 Inflation Headline and core excluding food and energy inflation rates remain contained but headline inflation has edged up over the past year or so Headline consumer prices rose 1 7 percent over the 12 months ending in September faster than the 1 2 percent year earlier rise Energy prices fell 0 6 percent in the year through September not quite as much as the 3 1 percent decline in the year through September 2013 Food prices rose 3 0 percent over the year through September 2014 much faster than the 1 4 percent increase in 5 the year through September 2013 On a 12 month basis core consumer prices excluding food and energy rose 1 7 percent through September 2014 matching the advance in the year through September 2013 Oil and gasoline prices have trended lower in the past few months The front month futures price of West Texas Intermediate WTI crude oil averaged 84 34 per barrel in October 2014 about 16 20 below its October 2013 average and the lowest monthly average since mid 2012 The retail price of regular gasoline averaged 3 17 per gallon in October cents lower than its year earlier average In early November the retail price of regular gasoline dipped below the 3 00 mark for the first time since December 2010 Federal Budget and Debt The federal budget deficit declined to 483 billion 2 8 percent of GDP in fiscal year 2014 dropping sharply from 680 billion 4 1 percent of GDP in fiscal year 2013 The deficit has declined by 7 full percentage points from a peak of 9 8 percent in fiscal year 2009 making the past 5 years the most rapid period of fiscal consolidation that the United States has experienced since the years following the end of World War II The debt to GDP ratio was 74 2 percent in fiscal year 2014 up from 72 1 percent in fiscal year 2013 On March trillion in mandated public spending cuts collectively known as the sequester took effect On December 26 President Obama signed the Bipartisan Budget Act of 2013 This agreement set funding levels for the Federal Government through the end of fiscal year 2015 and replaced much of the automatic budget cuts set to occur over the next 2 years under sequestration 45 billion in 2014 and 18 billion in 2015 Congress subsequently passed an omnibus package to fund the Federal December PROFILE OF THE ECONOMY Government for the remainder of fiscal year 2014 Altogether the Bipartisan Budget Act included 85 billion in total savings achieved through a combination of lower outlays and new revenue Net deficit reduction through fiscal year 2023 totaled 22 5 billion The agreement did not extend Emergency Unemployment Compensation EUC 2008 benefits which expired at the end of 2013 In March 2014 the Administration released its fiscal year 2015 budget The latest budget proposal would trim the deficit by an additional 2 1 trillion over the next 10 years and put the debt as a share of the economy on a declining path by the middle of this decade According to the MidSession Review of the Fiscal Year 2015 Budget the federal budget deficit is projected to average 2 5 percent of GDP from fiscal year 2015 through fiscal year 2024 The primary deficit non interest outlays less receipts is forecast to become a primary surplus in fiscal year 2021 and grow through the end of the forecast horizon The debt to GDP ratio is projected to peak at 74 6 percent in fiscal year 2015 and then begin to decline falling to 72 0 percent of GDP by fiscal year 2024 equivalent to its fiscal year 2013 level Economic Policy Key fiscal and monetary policy actions taken over the past few years have aided the recovery On the fiscal policy side the American Recovery and Reinvestment Act ARRA authorized the Federal Government to spend 787 billion to stimulate domestic demand an amount that was increased to 840 billion to be consistent with the President s Fiscal Year 2012 Budget This spending provided an important boost to economic activity but the Administration also proposed and implemented a variety of additional programs to maintain the recovery s momentum These included an extension and expansion of the first time December 2014 home buyer tax credit a new Small Business Jobs and Wages Tax Credit and additional financial support for State and local Governments In December 2010 the 2010 Tax Relief Act authorized a 2 percentage point payroll tax cut extensions of unemployment benefits and refundable tax credits and a 2 year extension of the 2001 tax cuts In late December 2011 the 2 percentage point payroll tax cut and extended unemployment benefits included in the 2010 tax legislation were each extended for 2 additional months In late February 2012 the extension of the payroll tax cut and extended unemployment benefits for the remainder of 2012 were signed into law In January 2013 the ATRA was signed into law The ATRA permanently extended tax cuts for the vast majority of Americans and small businesses extended Emergency Unemployment benefits for an additional year extended a variety of other tax cuts and credits postponed the sequester originally scheduled to take effect on January 1 until March and raised tax rates for high income earners representing about 2 percent of taxpayers Altogether the ATRA is projected to reduce the deficit by 737 billion over the next decade Partly in response to rising financial market stress as well as to signs of more slowing in the broader economy the Federal Reserve began the current cycle of monetary policy easing in September 2007 By late 2008 the FOMC had lowered the federal funds target interest rate dramatically reducing it to a historically low range of 0 percent to 0 25 percent at the December 2008 FOMC meeting Beginning with the August 2011 meeting the FOMC also began identifying an expected timeframe for maintaining the federal funds rate target at exceptionally low levels Initially put at mid 2013 the timeframe was extended to at least late 2014 at the January 2012 FOMC meeting and then to at least mid 2015 at the September 2012 meeting a timeframe for the target range which was maintained at the October 2012 meeting At the December 2012 meeting the FOMC implemented numerical thresholds for its policy rate guidance Specifically the FOMC indicated that it would maintain the target range at least as long as the unemployment rate remained above 6 5 percent inflation between 1 and 2 years ahead is projected to be no more than 0 5 percentage point above the FOMC s 2 percent longer run goal and long term inflation expectations remain well anchored At the December 2013 meeting the FOMC commented on the role of the numerical thresholds in formulating monetary policy indicating that it will likely be appropriate to maintain the current target range for the federal funds rate well past the time that the unemployment rate declines below 6 percent especially if projected inflation continues to run below the Committee s longer run goal At the FOMC meeting in March 2014 the Committee replaced the numerical thresholds in favor of qualitative guidance noting it will assess progress both realized and expected towards its objectives of maximum employment and 2 percent inflation and that it will likely PROFILE OF THE ECONOMY be appropriate to maintain the current target range for a considerable time after the asset purchase program ends especially if projected inflation continues to run below the Committee s 2 percent longer run goal and provided longerterm inflation expectations remain well anchored At its most recent meeting in October 2014 the FOMC reiterated this view The Federal Reserve significantly expanded its tools to increase liquidity in credit markets and eased lending terms to sectors in need of liquidity including a variety of facilities and funds directed at specific financial markets As of June all of these special facilities had expired At the August 2010 FOMC meeting the Federal Reserve announced it would maintain its holdings of securities at current levels by reinvesting principal payments from agency debt and agency mortgage backed securities in longer term Treasury securities and continue rolling over the Federal Reserve s holdings of Treasury securities as they mature At the end of June 2011 the FOMC completed purchases of 600 billion of longer term Treasury securities At the September 2011 meeting the FOMC announced it would extend the average maturity of its holdings a socalled twist operation by purchasing 400 billion of longer term 6 to 30 years Treasury securities and selling an equal amount of shorter term 3 years or less Treasury securities all by the end of June 2012 The Committee also announced the reinvestment of principal payments from its holdings of agency debt and agency mortgage backed securities into the latter securities At the June 2012 meeting the FOMC extended and expanded its program to extend the average maturity of its holdings the so called twist operation announced in September 2011 At the September 2012 meeting the FOMC announced it would increase monetary accommodation through 40 billion per month in additional purchases of mortgage backed securities through the end of the year The FOMC announced additional monetary accommodation at the December 2012 meeting including the completion of short term securities sales which drain liquidity and the continuation of purchases of long term Treasury securities at a rate of 45 billion per month beyond the end of 2012 The FOMC also indicated that monthly purchases of mortgage backed securities at a pace of 40 billion per month would continue and affirmed its existing policy of reinvesting principal payments At the December 2013 meeting the FOMC announced a tapering of long term Treasury security purchases and mortgage backed securities purchases of 5 billion each beginning in January 2014 The tapering brought monthly purchases to 40 billion and 35 billion respectively At each subsequent meeting in January March April June July and September 2014 the Committee announced further tapering of asset purchases of 5 billion in each category At its most recent meeting in October 2014 the Committee announced the conclusion of its asset purchase program at the end of October Financial Markets Financial markets have largely recovered from the unprecedented strains experienced in the fall of 2008 but came under renewed pressure in 2011 as investors expressed concerns about slowing economic growth in the United States as well as globally and about strains in debt markets in Europe The concerns persisted in 2012 and 2013 and expanded to include ongoing uncertainty about the United States fiscal situation and debt ceiling brinksmanship While certain domestic headwinds including the transitory effects of a harsh winter appear to have receded and concerns have eased about the sovereign debt crisis in Europe prospects for slowing global growth remain a concern Overall financial conditions in general continue to improve Credit flows have increased substantially since early 2009 and in the third quarter of 2014 banks generally continued to ease standards and terms across several lending categories After some deterioration in the summer of 2011 measures of risk tolerance and volatility have all improved After plunging 38 5 percent in 2008 the sharpest loss since 1931 when an earlier version of the index containing only 90 stocks dropped 47 percent the S P 500 index rose 23 5 percent in 2009 and 12 8 percent in 2010 Although the index was flat in 2011 it advanced 13 4 percent in 2012 and last year gained 29 6 percent ending the year at a new record high Thus far in 2014 the index has risen to and then retreated from new record highs but is currently up by about 10 percent compared with the end of 2013 The S P Stock Market Volatility Index VIX often used as a measure of financial market uncertainty surged to an alltime high of 80 in late October 2008 after hovering in a range of 20 to 30 for most of that year The VIX retreated fairly steadily during 2009 ending that year at about 20 Since then the VIX has fluctuated more widely resurging to 46 in mid May 2010 and to that level again in early October 2011 Since the most recent peak this index has generally trended lower and stood at about 13 7 as of early November 2014 A variety of factors have buffeted long term Treasury interest rates including flight to quality flows in response to a variety of specific risk events as well as supply concerns related to funding of the Government s debt concern about the need for fiscal retrenchment the downgrade of U S Treasury debt by rating agency S P in August 2011 periodic concerns about European debt markets and debt downgrades in some European countries and more recently concerns about slowing global growth The yield on the 10year note traded above the 3 percent level during the first half of 2011 but thereafter trended lower reaching a record low of 1 43 percent in late July 2012 The yield subsequently rose and fluctuated around the 2 percent mark in early 2013 then fell to about 1 7 percent in early May 2013 Thereafter the yield trended much higher surpassing the 3 percent level in late 2013 However thus far in 2014 the yield has declined by nearly 70 basis points to about 2 4 percent as of December PROFILE OF THE ECONOMY early November The 3 month Treasury bill yield fluctuated in a range from about 0 05 percent to 0 17 percent for much of 2011 but between August 2011 and January 2012 the yield fluctuated in a range of 0 0 percent to 0 02 percent Since then the yield has fluctuated under 0 1 percent as of early November 2014 The 2 to 10 year Treasury yield spread one measure of the steepness of the yield curve widened to 291 basis points in early February 2011 then trended noticeably lower reaching 132 basis points in midNovember 2012 The spread widened again after that reaching about 270 basis points in November 2013 but since then has narrowed significantly reaching 184 basis points as of early November 2014 Key interest rates on private securities which spiked in response to financial market turbulence in late 2008 have since retraced as conditions have stabilized The spread between the 3 month London Inter bank Offered Rate LIBOR and the 3 month Treasury bill rate also known as the TED spread a measure of inter bank liquidity and credit risk rose to an all time high of nearly 460 basis points in early October 2008 However improvements in short term credit availability have led to a narrowing of this spread Through early August 2011 the TED spread fluctuated in a range from 14 to 25 basis points Subsequently this spread widened reaching almost 60 basis points earlier in 2013 before narrowing since then to 20 basis points as of early November 2014 The spread between the Baa corporate bond yield and the 10 year Treasury yield peaked at nearly 620 basis points in December 2008 After narrowing on trend in the intervening years and trading below 300 basis points for much of 2011 the spread widened above that level again in early August 2011 to about 340 basis points The December 2014 spread remained above 300 basis points for much of 2012 but dropped below that level late in the year where it has remained since then This spread stood at 239 basis points as of early November 2014 still very high by historical standards Rates for conforming mortgages have trended lower in recent years as have rates for jumbo mortgages although over the summer and fall of 2013 mortgage rates rose considerably The interest rate for a 30 year conforming fixed rate mortgage fell to a record low of 3 31 percent in November 2012 starting in May 2013 however it started moving sharply higher From early May through midSeptember 2013 the rate jumped up by nearly 135 basis points Since then this rate has eased and dipped briefly below the 4 percent mark again in October 2014 before rising to about 4 1 percent in early November 2014 Foreign Exchange Rates The value of the U S dollar compared with the currencies of seven major trading partners the euro area countries Japan Canada the United Kingdom Australia Sweden and Switzerland appreciated to a peak level in February 2002 and then depreciated significantly over the next several years From its peak in February 2002 to the recent low reached in August 2011 the exchange value of the dollar compared to an index of these currencies fell by about 39 percent Although the dollar s exchange value against this index remains well below the February 2002 peak it has appreciated between August 2011 and October 2014 by about 17 percent Over the longer timeframe the dollar depreciated by about 42 percent against the yen and PROFILE OF THE ECONOMY by 39 percent against the euro In the period since August 2011 through October 2014 the dollar has appreciated by about 40 percent against the yen but has depreciated by nearly 12 percent against the euro Against an index of currencies of 19 other important trading partners including 9 China India and Mexico the dollar depreciated about 10 percent over the longer timeframe and has appreciated by about 7 percent against this basket between August 2011 and October 2014 December INTRODUCTION Federal Fiscal Operations Budget authority usually takes the form of appropriations that allow obligations to be incurred and payments to be made Reappropriations are Congressional actions that extend the availability of unobligated amounts that have expired or would otherwise expire These are counted as new budget authority in the fiscal year of the legislation in which the reappropriation act is included regardless of when the amounts were originally appropriated or when they would otherwise lapse Obligations generally are liquidated by the issuance of checks or the disbursement of cash outlays Obligations may also be liquidated and outlays recorded by the accrual of interest on public issues of Treasury debt securities including an increase in redemption value of bonds outstanding or by the issuance of bonds debentures notes monetary credits or electronic payments Refunds of collections generally are treated as reductions of collections whereas payments for earned income tax credits in excess of tax liabilities are treated as outlays Outlays during a fiscal year may be for payment of obligations incurred in prior years or in the same year Outlays therefore flow in part from unexpended balances of prior year budget authority and from budget authority provided for the year in which the money is spent Total outlays include both budget and off budget outlays and are stated net of offsetting collections Receipts are reported in the tables as either budget receipts or offsetting collections They are collections from the public excluding receipts offset against outlays These also called governmental receipts consist mainly of tax receipts including social insurance taxes receipts from court fines certain licenses and deposits of earnings by the Federal Reserve system Refunds of receipts are treated as deductions from gross receipts Total Government receipts are compared with total outlays in calculating the budget surplus or deficit Offsetting collections from other Government accounts or the public are of a business type or market oriented nature They are classified as either collections credited to appropriations or fund accounts or offsetting receipts i e amounts deposited in receipt accounts The former normally can be used without an appropriation act by Congress These occur in two instances 1 when authorized by law amounts collected for materials or services are treated as reimbursements to appropriations For accounting purposes earned reimbursements are also known as revenues These offsetting collections are netted against gross outlays in determining net outlays from such appropriations and 2 in the three types of revolving funds public enterprise intragovernmental and trust offsetting collections are netted against spending and outlays are reported as the net amount December 2014 Offsetting receipts in receipt accounts cannot be used without appropriation They are subdivided into three categories 1 proprietary receipts or collections from the public offset against outlays by agency and by function 2 intragovernmental transactions or payments into receipt accounts from governmental appropriation or fund accounts They finance operations within and between Government agencies and are credited with collections from other Government accounts and 3 offsetting governmental receipts that include foreign cash contributions Intrabudgetary transactions are subdivided into three categories 1 interfund transactions payments are from one fund group either Federal funds or trust funds to a receipt account in the other fund group 2 Federal intrafund transactions payments and receipts both occur within the Federal fund group and 3 trust intrafund transactions payments and receipts both occur within the trust fund group Offsetting receipts are generally deducted from budget authority and outlays by function subfunction or agency There are four types of receipts however that are deducted from budget totals as undistributed offsetting receipts They are 1 agencies payments including payments by offbudget Federal entities as employers into employees retirement funds 2 interest received by trust funds 3 rents and royalties on the Outer Continental Shelf lands and 4 other interest i e that collected on Outer Continental Shelf money in deposit funds when such money is transferred into the budget The Government has used the unified budget concept set forth in the Report of the President s Commission on Budget Concepts as a foundation for its budgetary analysis and presentation since 1969 The concept calls for the budget to include all of the Government s fiscal transactions with the public Since 1971 however various laws have been enacted removing several Federal entities from or creating them outside of the budget Other laws have moved certain off budget Federal entities onto the budget Under current law the off budget Federal entities consist of the two Social Security trust funds Federal Old Age and Survivors Insurance and the Federal Disability Insurance Trust Fund and the Postal Service Although an off budget Federal entity s receipts outlays and surplus or deficit ordinarily are not subject to targets set by the Congressional resolution the Balanced Budget and Emergency Deficit Control Act of 1985 commonly known as the Gramm Rudman Hollings Act as amended by the Budget Enforcement Act of 1990 2 United States Code included off budget surplus or deficit in calculating deficit targets under that act and in calculating excess deficit Partly for this reason attention has focused on both on and off budget receipts outlays and deficit of the Government FEDERAL FISCAL OPERATIONS Tables FFO 1 FFO 2 and FFO 3 are published quarterly and cover 5 years of data estimates for 2 years detail for 13 months and fiscal year to date data They provide a summary of data relating to Federal fiscal operations reported by Federal entities and disbursing officers and daily reports from the FRBs They also detail accounting transactions affecting receipts and outlays of the Government and off budget Federal entities and their related effect on assets and liabilities of the Government Data are derived from the Monthly Treasury Statement of Receipts and Outlays of the United States Government Table FFO 1 summarizes the amount of total receipts outlays and surplus or deficit as well as transactions in Federal securities monetary assets and balances in Treasury operating cash Table FFO 2 includes on and off budget receipts by source Amounts represent income taxes social insurance taxes net contributions for other insurance and retirement excise taxes estate and gift taxes customs duties and net miscellaneous receipts Table FFO 3 details on and off budget outlays by agency Table FFO 4 summarizes on and off budget receipts by source and outlays by function as reported to each major fund group classification for the current fiscal year to date and prior fiscal year to date Table FFO 5 summarizes internal revenue receipts by states and by type of tax Amounts reported are collections made in a fiscal year They span several tax liability years because they consist of prepayments estimated tax payments and taxes withheld by employers for individual income and Social Security taxes payments made with tax returns and subsequent payments made after tax returns are due or are filed that is payments with delinquent returns or on delinquent accounts Amounts are reported based on the primary filing address provided by each taxpayer or reporting entity For multistate corporations the address may reflect only the district where such a corporation reported its taxes from a principal office rather than other districts where income was earned or where individual income and Social Security taxes were withheld In addition an individual may reside in one district and work in another Table FFO 6 includes customs collection of duties taxes and fees by districts and ports Budget Results and Financing of the U S Government and Fourth Quarter Receipts by Source Source Office of Tax Analysis Office of Tax Policy Fourth Quarter Receipts The following capsule analysis of budget receipts by source for the fourth quarter of fiscal year 2014 supplements fiscal data reported in the September issue of the Treasury Bulletin At the time of that issue s release not enough data were available to analyze adequately collections for the quarter Individual income taxes Individual income tax receipts net of refunds were 348 8 billion for the fourth quarter of fiscal year 2014 This is an increase of 24 6 billion over the comparable prior year quarter Withheld receipts increased by 11 5 billion and non withheld receipts increased by 12 7 billion during this period Refunds decreased by 0 5 billion over the comparable fiscal year 2013 quarter There was an increase of 0 7 billion in accounting adjustments between individual income tax receipts and the Social Security and Medicare trust funds over the comparable quarter in fiscal year 2013 Corporate income taxes Net corporate income tax receipts were 85 7 billion for the fourth quarter of fiscal year 2014 This is an increase of 17 8 billion compared to the prior year fourth quarter The 17 8 billion change is comprised of an increase of 17 7 billion in estimated and final payments and a decrease of 0 1 billion in corporate refunds Employment taxes and contributions Employment taxes and contributions receipts for the fourth quarter of fiscal year 2014 were 227 8 billion an increase of 7 3 billion over the comparable prior year quarter Receipts to the Federal Old Age and Survivors Insurance Federal Disability Insurance and Federal Hospital Insurance trust funds changed by 5 0 billion 0 9 billion and 1 4 billion respectively There was a 3 1 billion accounting adjustment for prior years employment tax liabilities made in the fourth quarter of fiscal year 2014 while there was a 2 4 billion adjustment in the fourth quarter of fiscal year 2013 Unemployment insurance Unemployment insurance receipts net of refunds for the fourth quarter of fiscal year 2014 were 10 8 billion an increase of 0 1 billion over the comparable quarter of fiscal year 2013 Net State taxes deposited in the U S Treasury increased by 0 1 billion to 9 9 billion Net Federal Unemployment Tax Act taxes increased by 0 1 billion to 0 9 billion December 2014 FEDERAL FISCAL OPERATIONS 12 Budget Results and Financing of the U S Government and Fourth Quarter Receipts by Source continued Contributions for other insurance and retirement Contributions for other retirement were 0 9 billion for the fourth quarter of fiscal year 2014 This was a negligible change from the comparable quarter of fiscal year 2013 Excise taxes Net excise tax receipts for the fourth quarter of fiscal year 2014 were 35 4 billion an increase of 10 7 billion over the comparable prior year quarter Total excise tax refunds for the quarter were 1 0 billion a decrease of 1 0 billion over the comparable prior year quarter Estate and gift taxes Net estate and gift tax receipts were 5 4 billion for the fourth quarter of fiscal year 2014 These receipts represent an increase of 1 4 billion over the same quarter in fiscal year 2013 Customs duties Customs duties net of refunds were 9 5 billion for the fourth quarter of fiscal year 2014 This is an increase of 0 8 billion over the comparable prior year quarter Miscellaneous receipts Net miscellaneous receipts for the fourth quarter of fiscal year 2014 were 36 4 billion an increase of 11 0 billion over the comparable prior year quarter This change is due in part to deposits of earnings by Federal Reserve banks increasing by 5 6 billion Total On and Off Budget Results and Financing of the U S Government In millions of dollars Source Monthly Treasury Statement of Receipts and Outlays of the United States Government Fourth quarter 2014 July September Total on and off budget results Total receipts On budget receipts Off budget receipts Total outlays On budget outlays Off budget outlays Total surplus or deficit On budget surplus or deficit Off budget surplus or deficit Means of financing Borrowing from the public Reduction of operating cash Other means Total on and off budget financing Fiscal year 2014 year to date Fourth Quarter Net Budget Receipts by Source Fiscal Year 2014 In billions of dollars Source Monthly Treasury Statement of Receipts and Outlays of the United States Government Source Individual income taxes Corporate income taxes Employment and general retirement Unemployment insurance Contributions for other insurance and retirement Excise taxes Estate and gift taxes Customs duties Miscellaneous receipts Total budget receipts Note Detail may not add to totals due to independent rounding December 2014 July August September FEDERAL FISCAL OPERATIONS 13 December 2014 FEDERAL FISCAL OPERATIONS 14 TABLE FFO 1 Summary of Fiscal Operations In millions of dollars Source Monthly Treasury Statement of Receipts and Outlays of the United States Government Total on budget and off budget results Total surplus or deficit Total receipts 1 Off budget receipts 3 Total outlays Est Est Fiscal year 2014 to date Other 18 Transactions not applied to year s surplus or deficit 19 Total Financing Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Off budget outlays 6 On budget surplus or deficit On budget receipts 2 Fiscal year or month On budget outlays 5 Means of financing net transactions Borrowing from the public Off budget Federal securities surplus or Public debt deficit securities Means of financing net transactions continued Borrowing from the publicFederal securities con Fiscal year or month Agency securities 11 Investments of Government Total accounts Cash and monetary assets deduct Reserve position on the U S Treasury Special U S quota in operating drawing the IMF cash rights Other deduct Est Est Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Fiscal year 2014 to date Note These estimates are based on the MId Session Review of the President s Fiscal Year 2015 Budget released by the Office of Management and Budget on July December 2014 No transactions Detail may not add to totals due to rounding FEDERAL FISCAL OPERATIONS 15 TABLE FFO 2 On Budget and Off Budget Receipts by Source In millions of dollars Source Monthly Treasury Statement of Receipts and Outlays of the United States Government Social insurance and retirement receipts Employment and general retirement Old age disability and hospital insurance Income taxes Individual Fiscal year or month Corporation Net income taxes 8 Net 4 Gross 5 Refunds 6 Net Withheld 1 Other Est Est Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Fiscal year 2014 to date Fiscal year or month Refunds 3 Social insurance and retirement receipts continued Employment and general retirement continued Unemployment insurance Net employment Net unRailroad retirement employment and general insurance retirement Gross Refunds Gross Refunds Net Gross 9 Refunds 10 Net 11 Net for other insurance and retirement Federal employees Other retirement retirement Total Est Est Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Fiscal year 2014 to date See footnotes at end of table December 2014 FEDERAL FISCAL OPERATIONS 16 TABLE FFO 2 On Budget and Off Budget Receipts by Source continued In millions of dollars Source Monthly Treasury Statement of Receipts and Outlays of the United States Government Fiscal year or month Social insurance and retirement receipts con Net social insurance and retirement receipts 22 Excise taxes Airport and Airway Trust Fund Gross 23 Net 25 Refunds 24 Black Lung Disability Trust Fund Gross Refunds Highway Trust Fund Net 28 Gross 29 Refunds 30 Miscellaneous Net 31 Gross 32 Refunds 33 Net Est Est Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Fiscal year 2014 to date Net miscellaneous receipts Fiscal year or month Excise taxes con Net excise taxes 35 Customs duties Estate and gift taxes Gross 36 Refunds 37 Net 38 Gross 39 Refunds 40 Net 41 Deposits of earnings by Universal Federal service fund and all Reserve other Total banks Total receipts On budget 45 Off budget Est Est Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Fiscal year 2014 to date Note These estimates are based on the MId Session Review of the President s Fiscal Year 2015 Budget released by the Office of Management and Budget on July December 2014 No transactions Detail may not add to totals due to rounding FEDERAL FISCAL OPERATIONS 17 TABLE FFO 3 On Budget and Off Budget Outlays by Agency In millions of dollars Source Monthly Treasury Statement of Receipts and Outlays of the United States Government Fiscal year or month Legislative branch 1 Judicial branch 2 Department of Agriculture 3 Department of Commerce 4 Department of Depart DepartDefense ment of ment of military Education Energy Department of Health and Human Services 8 Department of Homeland Security 9 Department of Housing and Urban Development 10 Department of the Interior 11 Department of Justice 12 Department of Labor Est Est Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Fiscal year 2014 to date Fiscal year or month Department of State 14 Department of the Treasury interest on DepartTreasury ment of debt Transpor securities tation gross Department of the Treasury other 17 Department of Veterans Affairs 18 Corps of Engineers 19 Other Defense civil programs 20 Environmental Protection Agency 21 Executive Office of the President 22 InterGeneral national Services Admin Assistance Program istration Est Est Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Fiscal year 2014 to date See footnotes at end of table December 2014 FEDERAL FISCAL OPERATIONS 18 TABLE FFO 3 On Budget and Off Budget Outlays by Agency continued In millions of dollars Source Monthly Treasury Statement of Receipts and Outlays of the United States Government Fiscal year or month National Aeronautics and National Office of Space Science Personnel AdminisFounManagetration dation ment Small Business Administration 28 Social Security Administration 29 Independent agencies 30 Undistributed offsetting receipts Rents and royalties Employer on the share Interest Outer employee received Continenretireby trust tal Shelf ment funds lands Other Total outlays OnOffbudget budget Est Est Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Fiscal year 2014 to date Note These estimates are based on the MId Session Review of the President s Fiscal Year 2015 Budget released by the Office of Management and Budget on July December 2014 No transactions Detail may not add to totals due to rounding FEDERAL FISCAL OPERATIONS 19 TABLE FFO 4 Summary of U S Government Receipts by Source and Outlays by Agency September 2014 and Other Periods In millions of dollars Source Bureau of the Fiscal Service General funds 1 Classification Budget receipts Individual income taxes Corporation income taxes Social insurance and retirement receipts Employment and general retirement off budget Employment and general retirement on budget Unemployment insurance Other retirement Excise taxes Estate and gift taxes Customs duties Miscellaneous receipts Total receipts On budget Off budget Budget outlays Legislative branch Judicial branch Department of Agriculture Department of Commerce Department of Defense military Department of Education Department of Energy Department of Health and Human Services Department of Homeland Security Department of Housing and Urban Development Department of the Interior Department of Justice Department of Labor Department of State Department of Transportation Department of the Treasury Interest on the public debt Other Department of Veterans Affairs Corps of Engineers Other defense civil programs Environmental Protection Agency Executive Office of the President General Services Administration International Assistance Program National Aeronautics and Space Administration National Science Foundation Office of Personnel Management Small Business Administration Social Security Administration Other independent agencies Undistributed offsetting receipts Interest Other Total outlays On budget Off budget Surplus or deficit On budget Off budget No transactions Less than This fiscal year to date Management consolidated revolving and Trust special funds funds Total funds 4 General funds 5 Prior fiscal year to date Management consolidated Trust revolving and funds special funds Total funds Note Detail may not add to totals due to rounding December 2014 FEDERAL FISCAL OPERATIONS 20 TABLE FFO 5 Internal Revenue Receipts by State 2014 In thousands of dollars Source Chief Financial Officer Revenue Financial Management Individual income taxes employment taxes and estate and trust income taxes State Total Internal Revenue collections 1 1 Business income taxes 2 2 Total 3 Individual Income taxes withheld and FICA taxes 3 4 Individual income taxes not withheld and SECA taxes 3 5 United States total Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma See footnotes at end of table December 2014 FEDERAL FISCAL OPERATIONS 21 TABLE FFO 5 Internal Revenue Receipts by State 2014 continued In thousands of dollars Source Chief Financial Officer Revenue Financial Management Individual income taxes employment taxes and estate and trust income taxes State Total Internal Revenue collections 1 1 Business income taxes 2 2 Total 3 Individual Income taxes withheld and FICA taxes 3 4 Individual income taxes not withheld and SECA taxes 3 5 Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming U S Armed Services overseas and Territories other than Puerto Rico Puerto Rico International Undistributed See footnotes at end of table December 2014 FEDERAL FISCAL OPERATIONS 22 TABLE FFO 5 Internal Revenue Receipts by State 2014 continued In thousands of dollars Source Chief Financial Officer Revenue Financial Management Individual income and employment taxes continued Unemployment insurance taxes 6 Railroad retirement taxes 7 Estate and trust income taxes 8 Estate taxes 4 9 Gift taxes 10 United States total Alabama Alaska Arizona State Excise taxes 11 Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma See footnotes at end of table December 2014 FEDERAL FISCAL OPERATIONS 23 TABLE FFO 5 Internal Revenue Receipts by State 2014 continued In thousands of dollars Source Chief Financial Officer Revenue Financial Management Individual income and employment taxes continued State Unemployment insurance taxes 6 Railroad retirement taxes 7 Estate and trust income taxes 8 Estate taxes 9 Gift taxes 10 Excise taxes 11 Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming U S Armed Services overseas and Territories other than Puerto Rico Puerto Rico International Undistributed Excludes excise taxes paid to the U S Customs Border Protection and the Alcohol and Tobacco Tax and Trade Bureau 2 Includes taxes on corporation income Form 1120 series and unrelated business income from tax exempt organizations Form 990 T 3 Collections of individual income tax are not reported by taxpayers separately from Old Age Survivors Disability and Hospital Insurance OASDHI taxes on salaries and wages under the Federal Insurance Contributions Act or FICA and taxes on self employment income under the Self Employment Insurance Contributions Act or SECA 4 Excludes adjustments and credits to taxpayer accounts 5 Includes tax and excess withholding payments not classified by State as of the end of the fiscal year because they had not been applied to taxpayer accounts Note Partnership and S corporation data are not shown in this table since these entities generally do not have a tax liability Instead they pass through any profits or losses to the underlying owners who include these profits or losses on their income tax returns Note Collection and refund data may not be comparable for a given fiscal year because payments made in prior years may be refunded in the current fiscal year Adjustments to prior year refunds made in Fiscal Year 2014 may result in negative amounts when such adjustments exceed current year collections Note Classification by State is based on the individual s address or in the case of businesses the location of the principal office or place of business However some individuals may use the address of a tax attorney or accountant Sole proprietors partners in a partnership or shareholders in an S corporation may use their business addresses Such addresses could have been located in a State other than the State in which the individual resided Similarly taxes withheld reported by employers located near a State boundary might include substantial amounts withheld from salaries of employees who reside in a neighboring State Also while taxes of corporations may be paid from the principal office the operations of these corporations may be located in one or more other State s Detail may not add to totals because of rounding December 2014 FEDERAL FISCAL OPERATION 24 TABLE FFO 6 Customs and Border Protection Collection of Duties Taxes and Fees by Districts and Ports Source U S Customs and Border Protection District and Port of Collection Port Code Collection Fiscal Year 2014 Headquarters Revenue Division Indianapolis IN Portland Maine Portland ME Bangor ME Eastport ME Jackman ME Vanceboro ME Houlton ME Fort Fairfield ME Van Buren ME Madawaska ME Fort Kent ME Calais ME Limestone ME Bridgewater ME Portsmouth NH Belfast ME Manchester Airport NH Total District St Albans Vermont St Albans VT Richford VT Beecher Falls VT Burlington VT Derby Line VT Norton VT Highgate Springs Alburg VT Total District Boston Massachusetts Boston MA Springfield MA Worcester MA Gloucester MA New Bedford MA Fall River MA Salem MA Bridgeport CT Hartford CT New Haven CT New London CT Lawrence MA Logan Airport MA Hanscom User Fee Airport MA Total District Providence Rhode Island Newport RI Providence RI Total District Ogdensburg New York Ogdensburg NY Massena NY Cape Vincent NY Alexandria Bay NY December District and Port of Collection Port Code Collection Fiscal Year 2014 Ogdensburg New York continued Champlain Rouses Point NY Trout River NY Total District Buffalo New York Buffalo Niagara Falls NY Rochester NY Oswego NY Syracuse NY Binghamton Regional Airport NY Total District New York New York New York NY Albany NY New York Newark Area NJ Perth Amboy NJ UPS Newark NJ Federal Express ECCF NJ Morristown Airport NJ John F Kennedy Airport NY John F Kennedy Air Jamaica NY NYACC NY DHL Airways NY Emery Worldwide NY Air France Jamaica NY Dworkin Cosell Jamaica NY TNT Skypak NY JFK Int l Airport Jamaica NY Total District Philadelphia Pennsylvania Philadelphia PA Chester PA Wilmington DE Pittsburgh PA Wilkes Barre Scranton PA Philadelphia International Airport PA Harrisburg PA Cherry Hill NJ Allentown PA Atlantic City Airport NJ Trenton Mercer CTY Airport PA UPS HUB Philadelphia PA Total District Baltimore Maryland Baltimore MD BWI Airport MD Total District Norfolk Virginia Norfolk VA Norfolk Subport VA Richmond Petersburg VA Charleston WV New River Valley Airport VA Total District FEDERAL FISCAL OPERATIONS 25 TABLE FFO 6 Customs and Border Protection Collection of Duties Taxes and Fees by Districts and Ports continued Source U S Customs and Border Protection District and Port of Collection Port Code Collection Fiscal Year 2014 Charlotte North Carolina Wilmington NC Winston Salem NC Durham NC Beaufort Morehead City NC Charlotte NC Total District Charleston South Carolina Charleston SC Georgetown SC Greenville Spartanburg SC Columbia SC Myrtle Beach Int l Airport SC Total District Savannah Georgia Brunswick GA Savannah GA Atlanta GA Total District Tampa Florida Tampa FL Jacksonville FL Fernandina Beach FL Orlando FL Orlando Sanford Airport FL St Petersburg FL Port Canaveral FL Panama City FL Pensacola FL Port Manatee FL Ft Myers FL Naples Municipal Airport FL Sarasota Bradenton Airport FL Daytona Beach Int l Airport FL Melbourne Airport FL Leesburg Regional Airport FL Orlando Executive Airport FL St Augustine Airport UFA FL Total District Mobile Alabama Mobile AL Gulfport MS Pascagoula MS Birmingham AL Panama City FL Huntsville AL Total District New Orleans Louisiana Morgan City LA New Orleans LA Little Rock AR Baton Rouge LA Memphis TN Nashville TN District and Port of Collection Port Code Collection Fiscal Year 2014 New Orleans Louisiana continued Chattanooga TN Destrehan LA Gramercy LA Greenville MS Vicksburg MS Knoxville TN Lake Charles LA Shrevesport Bossler City LA Port of Tri Cities TN TRI City Airport Blountville TN Rogers Municipal Airport AR FEDEX Courier Memphis TN Memphis TN Cartage CNTL Total District Port Arthur Texas Port Arthur TX Sabine TX Orange TX Beaumont TX Blythe CA Border Patrol Yuma AZ Border Patrol Wellton AZ Border Patrol Total District Laredo Texas Brownsville TX Del Rio TX Eagle Pass TX Laredo TX Hidalgo TX Rio Grande City TX Progresso TX Roma TX Border Patrol Sector HQ TX Comstock Border Patrol TX Carrizo Springs Border Patrol TX Del Rio Border Patrol TX Eagle Pass Border Patrol TX Brackettville Border Patrol TX Uvalde Border Patrol TX Rocksprings TX Border Patrol Sector HQ TX Valley Int l Airport UFA TX Hidalgo Cartage Pharr TX Total District El Paso Texas El Paso District TX El Paso TX Presidio TX Fabens TX Columbus NM Albuquerque NM Santa Teresa NM Alpine TX Total District December 2014 FEDERAL FISCAL OPERATION 26 TABLE FFO 6 Customs and Border Protection Collection of Duties Taxes and Fees by Districts and Ports continued Source U S Customs and Border Protection District and Port of Collection Port Code Collection Fiscal Year 2014 Nogales Arizona Douglas AZ Lukeville AZ Naco AZ Nogales AZ Phoenix AZ Sasabe AZ San Luis AZ Tucson AZ Border Patrol Sector HQ AZ Casa Grande AZ Border Patrol Tucson AZ Border Patrol Nogales AZ Border Patrol Willcox AZ Border Patrol Douglas AZ Border Patrol Ajo AZ Border Patrol Naco Border Patrol AZ Sonoita AZ Border Patrol Scottsdale User Fee Airport AZ Williams Gateway Airport AZ Total District San Diego California San Diego CA Andrade CA Calexico CA San Ysidro CA Tecate CA Otay Mesa CA Calexico East CA McClellan Palomar Airport CA Total District Los Angeles California Los Angeles CA Long Beach CA Port Hueneme CA Los Angeles Int l Airport CA Ontario Int l Airport CA Las Vegas NV DHL Los Angeles CA Gateway FRT Los Angeles CA TNT Express Worldwide CA Int l Bonded Couriers CA Micom CA Los Angeles Int l Airport CA Palm Springs User Fee CA San Bernardino U F Airport CA So California Logistics Airport CA Meadows Field Airport CA John Wayne Airport CA DHL HUB CA UPS Ontario Los Angeles CA Total District San Francisco CA San Francisco Int l Airport CA Eureka CA Fresno CA San Francisco CA December District and Port of Collection Port Code San Francisco CA continued Oakland CA Reno NV San Jose Int l Airport CA Sacramento Int l Airport CA DHL Worldwide Express CA Fresno Yosemite Airport CA FEDEX Courier Facility CA Total District Great Falls Montana Raymond MT Eastport ID Salt Lake City UT Great Falls MT Butte MT Turner MT Denver CO Porthill ID Scoby MT Sweetgrass MT Piegan MT Opheim MT Roosville MT Morgan MT Whitlash MT Del Bonita MT Wildhorse MT Kalispell MT Willow Creek MT JEFFCO User Fee Airport CO Centennial Airport CO Eagle County Regional Airport CO Bozeman Yellowstone MT Total District Pembina North Dakota Pembina ND Portal ND Neche ND St John ND Northgate ND Walhalla ND Hannah ND Sarles ND Ambrose ND Fargo In tl Airport ND Antler ND Sherwood ND Hansboro ND Maida ND Fortuna ND Westhope ND Noonan ND Carbury ND Dunseith ND Warroad MN Baudette MN Pinecreek MN Collection Fiscal Year FEDERAL FISCAL OPERATIONS 27 TABLE FFO 6 Customs and Border Protection Collection of Duties Taxes and Fees by Districts and Ports continued Source U S Customs and Border Protection District and Port of Collection Port Code Collection Fiscal Year 2014 Pembina North Dakota continued Roseau MN Grand Forks Airport ND Lancaster MN Minot Airport ND Total District Minneapolis Minnesota Minneapolis St Paul MN Sioux Falls SD Duluth MN Omaha NE Des Moines IA Rochester MN Total District International Falls Minnesota International Falls MN Grand Portage MN Total District Milwaukee Wisconsin Milwaukee WI Green Bay WI Racine WI Total District Portland Oregon Astoria OR Newport OR Coos Bay OR Portland OR Longview WA Boise ID Vancouver WA Portland Int l Airport OR Hillsboro Airport OR Total District Detroit Michigan Detroit MI Port Huron MI Sault Sainte Marie MI Saginaw Bay City MI Battle Creek MI Grand Rapids MI Detroit Metropolitan Airport MI Algonac MI Oakland County Int l Airport MI Willow Run Airport MI Capital Region Int l Airport MI Total District Collection Fiscal Year 2014 District and Port Port of Collection Code Chicago Illinois Chicago IL Peoria IL Davenport Rock Island IL Rockford Airport IL Midway Int l Airport IL TNT ECCF Chicago IL Waukegan Airport IL Chicago Executive Airport IL Dupage Airport Auth IL Decatur Airport IL Total District Cleveland Ohio Cleveland OH Cincinnati OH Columbus OH Dayton OH Toledo OH Erie PA Indianapolis IN Louisville KY Owensboro Evansville IN Ashtabula Conneaut OH Fort Wayne Airport IN Blue Grass Airport KY Burlington Air Express OH DHL Express OH UPS Courier Louisville KY DHL Courier OH Federal Express Hub IN Total District St Louis Missouri Kansas City MO St Louis MO Wichita KS Springfield MO MidAmerica Airport MO Total District Preclearance Washington DC USCBP Abu Dhabi Preclearance Washington DC USCBP Vancouver Preclearance Washington DC USCBP Calgary Preclearance Washington DC USCBP Edmondton Preclearance Washington DC USCBP Montreal Preclearance Washington DC USCBP Toronto Preclearance Washington DC December 2014 FEDERAL FISCAL OPERATION 28 TABLE FFO 6 Customs and Border Protection Collection of Duties Taxes and Fees by Districts and Ports continued Source U S Customs and Border Protection District and Port of Collection Port Code Preclearance Washington DC continued USCBP Winnipeg Preclearance Washington DC USCBP Ottawa Preclearance Washington DC USCBP Victoria Preclearance Washington DC USCBP Halifax NS Preclearance Washington DC USCBP St Thomas Preclearance VI USCBP St Croix Preclearance VI USCBP Bermuda Preclearance Washington DC USCBP Freepor t Preclearance Washington DC USCBP Nassau Preclearance Washington DC USCBP Aruba Preclearance Washington DC Dublin IE Preclearance Washington DC Shannon IE Preclearance Washington DC Total District Collection Fiscal Year San Juan Puerto Rico Aguadilla PR Fajardo PR Mayaguez PR Ponce PR San Juan PR Guayanilla PR San Juan Int l Airport PR Total District Virgin Islands of the United States Charlotte Amalie VI Cruz Bay VI Christiansted VI Total District Miami Florida Miami FL Key West FL Port Everglades FL West Palm Beach FL Fort Pierce FL Miami Int l Airport FL Fort Lauderdale Int l Airport FL DHL Worldwide Express FL Miami Int l Airport UPS Inactive FL UPS Miami Int l Airport FL DHL Worldwide Express FL FEDEX Courier Hub Miami FL IBC Courier Hub Miami FL Miami Seaport ALT FL Total District December 2014 District and Port of Collection Port Code Washington DC Washington DC Total District Collection Fiscal Year Houston Texas Houston TX Houston George Bush Intercontinental Airport TX Galveston TX Freeport TX Corpus Christi TX Port Lavaca TX Border Patrol Sector HQ TX Mercedes Weslaco TX Border Patrol Falfurrias TX Border Patrol Rio Grande City TX Border Patrol McAllen TX Border Patrol Brownsville TX Border Patrol Harlingen TX Border Patrol Kingsville TX Border Patrol Ft Brown TX Border Patrol Sugar Land Regional AP TX Total District Dallas Ft Worth Texas Dallas Ft Worth TX Amarillo TX Lubbock TX Oklahoma City OK Tulsa OK Austin TX San Antonio TX Border Patrol Sector HQ TX Lubbock TX Border Patrol Presidio TX Border Patrol Marfa TX Border Patrol Fort Stockton TX Sanderson TX Border Patrol Alpine TX Border Patrol Sierra Blanca TX Border Patrol Midland TX Midland Int l Airport TX Fort Worth Alliance Airport TX Addison Airport TX Collin County Regional Airport TX Kelly Field Annex TX Dallas Love Field DAL TX Total District Seattle Washington Seattle WA Tacoma WA Aberdeen WA Blaine WA Bellingham WA Everett WA Port Angeles WA Port Townsend WA FEDERAL FISCAL OPERATIONS 29 TABLE FFO 6 Customs and Border Protection Collection of Duties Taxes and Fees by Districts and Ports continued District and Port of Collection Port Code Source U S Customs and Border Protection Collection Fiscal Year District and Port 2014 of Collection Seattle Washington continued Sumas WA Anacortes WA Nighthawk WA Danville WA Ferry WA Friday Harbor WA Boundary WA Laurier WA Point Roberts WA Oroville WA Frontier WA Spokane WA BP Sector HQ Spokane WA Lynden WA Metaline Falls WA Olympia WA Seattle Tacoma Int l Airport WA UPS Seattle WA Grant County Airport Moses Lake WA Total District Collection Fiscal Year 2014 Anchorage Alaska continued Alcan AK Wrangell AK Dalton Cache AK Valdez AK Fairbanks AK Sitka AK Anchorage AK Kodiak AK Federal Express Courier AK UPS Courier Hub AK Total District Honolulu Hawaii Honolulu HI Hilo HI Kahului HI Honolulu Airport HI Kona HI Total District Total Customs and Border Protection Collections for fiscal year Anchorage Alaska Juneau AK Ketchikan AK Skagway AK Port Code December INTRODUCTION Source and Availability of the Balance in the Account of the U S Treasury The Department of the Treasury s Treasury s operating cash is maintained in accounts with the Federal Reserve banks FRBs and branches as well as in tax and loan accounts in other financial institutions Major information sources include FRBs Treasury Regional Financial Centers Internal Revenue Service Centers Bureau of the Fiscal Service and various electronic systems As the FRB accounts are depleted funds are called in withdrawn from thousands of tax and loan accounts at financial institutions throughout the country Under authority of Public Law 95 147 codified at 31 United States Code 323 Treasury implemented a program on November to invest a portion of its operating cash in obligations of depositaries maintaining tax and loan accounts Under the Treasury tax and loan TT L investment program depositary financial institutions select the manner in which they will participate Financial institutions wishing to retain funds deposited into their tax and loan accounts in interest bearing obligations can participate The program permits Treasury to collect funds through financial institutions and to leave the funds in TT L depositaries and in the financial communities in which they arise until Treasury needs the funds for its operations In this way Treasury is able to neutralize the effect of its fluctuating operations on TT L financial institution reserves and on the economy Likewise those institutions wishing to remit the funds to the Treasury account at FRBs do so as collector depositaries Deposits to tax and loan accounts occur as customers of financial institutions deposit tax payments that the financial institutions use to purchase Government securities In most cases this involves a transfer of funds from a customer s account to the tax and loan account in the same financial institution Also Treasury can direct the FRBs to invest excess funds in tax and loan accounts directly from the Treasury account at the FRBs TABLE UST 1 Elements of Change in Federal Reserve and Tax and Loan Note Account Balances 1 In millions of dollars Source Bureau of the Fiscal Service Credits and withdrawals Fiscal year or month Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept See footnotes at end of table December 2014 Federal Reserve accounts Credits 2 Received through remittance option tax Received directly and loan depositaries Withdrawals 3 3 Tax and loan note accounts Withdrawals transfers to Federal Taxes 4 Reserve accounts ACCOUNT OF THE U S TREASURY 31 TABLE UST 1 Elements of Change in Federal Reserve and Tax and Loan Note Account Balances continued 1 In millions of dollars Source Bureau of the Fiscal Service Balances End of period Fiscal year or month Federal Reserve High Average Tax and loan note accounts 11 Federal Reserve Tax and loan note accounts 8 Federal Reserve 9 SFP SFP 7 During period Low Tax and loan note SFP accounts Federal Reserve 15 Tax and loan note accounts 17 SFP Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept This report does not include Supplementary Financing Program SFP balances Represents transfers from tax and loan note accounts proceeds from sales of securities other than Government account series and taxes 3 Represents checks paid wire transfer payments drawdowns on letters of credit redemptions of securities other than Government account series and investment transfer of excess funds out of this account to the tax and loan note accounts 2 4 Taxes eligible for credit consist of those deposited by taxpayers in the tax and loan depositaries as follows withheld income taxes beginning March 1948 taxes on employers and employees under the Federal Insurance Contributions Act beginning January 1950 and under the Railroad Retirement Tax Act beginning July 1951 a number of excise taxes beginning July 1953 estimated corporation income taxes beginning April 1967 all corporation income taxes due on or after March Federal Unemployment Tax Act taxes beginning April 1970 and individual estimated income taxes beginning October 1988 December INTRODUCTION Federal Debt Treasury securities i e public debt securities comprise most of the Federal debt with securities issued by other Federal agencies accounting for the rest Tables in this section of the Treasury Bulletin reflect the total Further detailed information is published in the Monthly Statement of the Public Debt of the United States Likewise information on agency securities and on investments of Federal Government accounts in Federal securities is published in the Monthly Treasury Statement of Receipts and Outlays of the United States Government Treasury s Bureau of the Fiscal Service compiles data in the Treasury Bulletin tables FD 2 and FD 6 from the Monthly Statement of the Public Debt of the United States Table FD 1 summarizes the Federal debt by listing public debt and agency securities held by the public including the Federal Reserve It also includes debt held by Federal agencies largely by the Social Security and other Federal retirement trust funds The net unamortized premium and discount also are listed by total Federal securities securities held by Government accounts and securities held by the public The difference between the outstanding face value of the Federal debt and the net unamortized premium and discount is classified as the accrual amount For greater detail on holdings of Federal securities by particular classes of investors see the ownership tables OFS 1 and OFS 2 Table FD 2 categorizes by type that is marketable and nonmarketable the total public debt securities outstanding that are held by the public In table FD 3 nonmarketable Treasury securities held by U S Government accounts are summarized by issues to particular funds within Government Many of the funds invest in par value special series nonmarketabletes at interest rates determined by law Others invest in marketbased special Treasury securities whose terms mirror those of marketable securities Table FD 4 presents interest bearing securities issued by Government agencies Federal agency borrowing December 2014 has declined in recent years in part because the Federal Financing Bank has provided financing to other Federal agencies Federal agency borrowing from Treasury is presented in the Monthly Treasury Statement of Receipts and Outlays of the United States Government Table FD 5 illustrates the average length of marketable interest bearing public debt held by private investors and the maturity distribution of that debt In March 1971 Congress enacted a limited exception to the amount of bonds with rates greater than 4 1 4 percent that could be held by the public This permitted Treasury to offer securities maturing in more than 7 years at current market interest rates for the first time since 1965 In March 1976 the definition of a bond was changed to include those securities longer than 10 years to maturity This exception has expanded since 1971 authorizing Treasury to continue to issue long term securities The ceiling on Treasury bonds was repealed on November The volume of privately held Treasury marketable securities by maturity class reflects the remaining period to maturity of Treasury bills notes and bonds The average length is comprised of an average of remaining periods to maturity weighted by the amount of each security held by private investors In other words computations of average length exclude Government accounts and the FRBs In table FD 6 the debt ceiling is compared with the outstanding debt subject to limitation by law The other debt category includes Federal debt Congress has designated as being subject to the debt ceiling Table FD 7 details Treasury holdings of securities issued by Government corporations and other agencies Certain Federal agencies are authorized to borrow money from the Treasury largely to finance direct loan programs In addition agencies such as the Bonneville Power Administration are authorized to borrow from the Treasury to finance capital projects Treasury in turn finances these loans by selling Treasury securities to the public FEDERAL DEBT 33 TABLE FD 1 Summary of Federal Debt In millions of dollars Source Monthly Treasury Statement of Receipts and Outlays of the United States Government End of fiscal year or month Total 1 Amount outstanding Public debt securities 2 Agency securities 3 Total 4 Securities held by Government accounts Public debt Agency Total securities securities The public Public debt securities 8 Agency securities Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Federal debt securities Net Amount unamortized outstanding premium Accrual face value and discount amount Securities held by Government accounts Net Amount unamortized Accrual outstanding premium amount face value and discount Securities held by the public Net Amount unamortized Accrual outstanding premium amount face value and discount Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept End of fiscal year or month December 2014 FEDERAL DEBT 34 TABLE FD 2 Debt Held by the Public In millions of dollars Source Monthly Statement of the Public Debt of the United States Marketable Treasury inflationprotected securities 6 Floating rate notes 7 Nonmarketable Total 8 Total public debt securities outstanding 1 Total 2 Bills 3 Notes 4 Bonds Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept End of fiscal year or month Nonmarketable continued U S savings securities 9 Depositary compensation securities Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept End of fiscal year or month December 2014 Foreign series 11 Government account series 12 State and local government series 13 Domestic series 14 Other FEDERAL DEBT 35 TABLE FD 3 Government Account Series In millions of dollars Source Monthly Statement of the Public Debt of the United States Deposit Insurance Fund 3 Employees Life Insurance Fund 4 Exchange Stabilization Fund 5 Federal Disability Insurance Trust Fund 6 Federal employees retirement funds 7 Federal Hospital Insurance Trust Fund 8 Federal Housing Administration 9 End of fiscal year or month Total 1 Airport and Airway Trust Fund Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept End of fiscal year or month Federal Old Age and Survivors Insurance Trust Fund 10 Federal Savings and Loan Corporation Resolution Fund 11 Federal Supplementary Medical Insurance Trust Fund 12 Highway Trust Fund 13 National Service Life Insurance Fund 14 Postal Service Fund 15 Railroad Retirement Account 16 Unemployment Trust Fund 17 Other Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Note Detail may not add to totals due to rounding December 2014 FEDERAL DEBT 36 TABLE FD 4 Interest Bearing Securities Issued by Government Agencies In millions of dollars Source Monthly Treasury Statement of Receipts and Outlays of the United States Government Total outstanding 1 Department of Housing and Urban Development Federal Housing Administration 2 Architect of the Capitol 3 Other independent Tennessee Valley Authority 4 National Archives and Records Administration 5 Other Federal Communications Commission Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept End of fiscal year or month Note Detail may not add to totals due to rounding December 2014 Less than FEDERAL DEBT 37 TABLE FD 5 Maturity Distribution and Average Length of Marketable Interest Bearing Public Debt Held by Private Investors In millions of dollars Source Office of Debt Management Office of the Under Secretary for Domestic Finance Amount outstanding privately held 1 Within 1 year years Maturity classes 5 10 years years 5 20 years or more 6 Average length months Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept End of fiscal year or month Note Detail may not add to totals due to rounding December 2014 FEDERAL DEBT 38 TABLE FD 6 Debt Subject to Statutory Limit In millions of dollars Source Monthly Statement of the Public Debt of the United States End of fiscal year or month Statutory debt limit 1 Securities outstanding Debt subject to limit Total 2 Public debt 3 Other debt 1 4 Public debt 5 Other debt 6 Securities not subject to limit Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Pursuant to 31 U S C 3101 b By Act of February Public Law 113 3 the Statutory Debt Limit has been suspended and shall not apply for the period beginning February and ending on May Pursuant to 31 U S C 3101 b By the Continuing Appropriations Act of 2014 Public Law 113 46 the Statutory Debt Limit has been suspended and shall not apply for the period beginning October and ending on February December Pursuant to 31 U S C 3101 b By the Temporary Debt Limit Extension Act Public Law 113 83 the Statutory Debt Limit has been suspended and shall not apply for the period beginning February and ending on March FEDERAL DEBT 39 TABLE FD 7 Treasury Holdings of Securities Issued by Government Corporations and Other Agencies In millions of dollars Source Monthly Treasury Statement of Receipts and Outlays of the United States Government End of fiscal year or month Total 1 Farm Service Agency 2 Rural Utilities Service 3 Department of Agriculture Rural Business Rural Housing and Community and Cooperative Development Development Service Service Foreign Agricultural Service Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept End of fiscal year or month Department of Education 7 Department of Energy Bonneville Power Administration 8 Department of Housing and Urban Development Federal Housing Other Housing Administration programs Department of the Treasury Federal Financing Bank Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept December 2014 FEDERAL DEBT 40 TABLE FD 7 Treasury Holdings of Securities Issued by Government Corporations and Other Agencies continued In millions of dollars Source Monthly Treasury Statement of Receipts and Outlays of the United States Government Export Import Bank of the United States 12 Railroad Retirement Board 13 Small Business Administration 14 Other Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept End of fiscal year or month Note For the Department of Housing and Urban Development other HUD Housing Programs were reclassified from Other to Other Housing Programs for fiscal year 2009 through the current fiscal year to date December 2014 Note Detail may not add to totals due to rounding 41 INTRODUCTION Bureau of the Fiscal Service Operations Chapter 31 of Title 31 of the United States Code allows the Secretary of Treasury to borrow money by issuing Treasury securities The Secretary determines the terms and conditions of issue conversion maturity payment and interest rate New issues of Treasury notes mature in 2 to 10 years Bonds mature in more than 10 years from the issue date Each outstanding marketable security is listed in the Monthly Statement of the Public Debt of the United States The information in this section of the Treasury Bulletin pertains only to marketable Treasury securities The Bureau of the Fiscal Service is a new bureau within the Treasury Department formed on October from the consolidation of the Financial Management Service and the Bureau of the Public Debt Our mission is to promote the financial integrity and operational efficiency of the U S government through exceptional accounting financing collections payments and shared services As one bureau the organization is better positioned to help transform financial management and the delivery of shared services in the federal government The bureau will be a valued partner for agencies as they work to strengthen their own financial management or as they look for a quality service provider who can allow them to focus on their missions Table PDO 1 presents the results of weekly auctions of and 26 week bills Treasury bills mature each Thursday Issues of 4 and 13 week bills are reopenings of 26 week bills High rates on accepted tenders and the dollar value of total bids are presented with the dollar value of awards made on both competitive and noncompetitive basis To encourage the participation of individuals and smaller institutions Treasury accepts noncompetitive tenders of up to 5 million in each auction of securities Table PDO 2 lists the results of auctions of marketable securities other than weekly bills in chronological order over the past 2 years Issues of cash management bills also are presented Note On July Treasury published amendments to its marketable securities auction rules to accommodate the auction and issuance of Floating Rate Notes FRNs An FRN is a security that has an interest payment that can change over time Treasury FRNs will be indexed to the most recent 13week Treasury bill auction High Rate which is the highest accepted discount rate in a Treasury bill auction FRNs will pay interest quarterly TREASURY FINANCING JULY SEPTEMBER Source Bureau of the Fiscal Service Division of Financing Operations JULY Auction of 3 Year Notes On July Treasury announced it would auction 27 000 million of 3 year notes The issue was to refund 55 904 million of securities maturing July 15 and to raise new cash of approximately 5 096 million The 3 year notes of Series AP 2017 were dated and issued July 15 They are due July with interest payable on January 15 and July 15 until maturity Treasury set an interest rate of 0 7 8 percent after determining which tenders were accepted on a yield auction basis Treasury received tenders for the notes before 12 00 noon eastern time e t for noncompetitive tenders and before 1 00 p m e t for competitive tenders on July 8 Tenders totaled 91 274 million Treasury accepted 27 000 million All noncompetitive and successful competitive bidders were allotted securities at the high yield of 0 992 percent with an equivalent price of Treasury accepted in full all competitive tenders at yields lower than 0 992 percent Tenders at the high yield were allotted 5 49 percent The median yield was 0 974 percent and the low yield was 0 895 percent Noncompetitive tenders totaled 74 million Competitive tenders accepted from private investors totaled 26 826 million The minimum par amount required for Separate Trading of Registered Interest and Principal Securities STRIPS of notes of Series AP 2017 is 100 Auction of 9 Year 10 Month 2 1 2 Percent Notes On July Treasury announced it would auction 21 000 million of 9 year 10 month 2 1 2 percent notes The issue was to refund 55 904 million of securities maturing July 15 and to raise new cash of approximately 5 096 million The 9 year 10 month notes of Series C 2024 were dated May 15 and issued July 15 They are due May with interest payable on November 15 and May 15 until maturity Treasury received tenders for the notes before 12 00 noon e t for noncompetitive tenders and before 1 00 p m e t for competitive tenders on July 9 Tenders totaled 54 009 million Treasury accepted 21 000 million All noncompetitive and successful competitive bidders were allotted securities at the high yield of 2 597 percent with an equivalent price of Treasury accepted in full all competitive tenders at yields lower than 2 597 percent Tenders at the high yield were allotted 14 04 percent The median yield was 2 560 percent and the low yield was 2 491 December 2014 BUREAU OF THE FISCAL SERVICE OPERATIONS 42 TREASURY FINANCING JULY SEPTEMBER continued percent Noncompetitive tenders totaled 17 million Competitive tenders accepted from private investors totaled 20 984 million Accrued interest of per 1 000 must be paid for the period from May 15 to July 15 The minimum par amount required for STRIPS of notes of Series C 2024 is 100 Auction of 29 Year 10 Month 3 3 8 Percent Bonds On July Treasury announced it would auction 13 000 million of 29 year 10 month 3 3 8 percent bonds The issue was to refund 55 904 million of securities maturing July 15 and to raise new cash of approximately 5 096 million The 29 year 10 month bonds of May 2044 were dated May 15 and issued July 15 They are due May with interest payable on November 15 and May 15 until maturity Treasury received tenders for the bonds before 12 00 noon e t for noncompetitive tenders and before 1 00 p m e t for competitive tenders on July 10 Tenders totaled 31 247 million Treasury accepted 13 000 million All noncompetitive and successful competitive bidders were allotted securities at the high yield of 3 369 percent with an equivalent price of Treasury accepted in full all competitive tenders at yields lower than 3 369 percent Tenders at the high yield were allotted 91 54 percent The median yield was 3 322 percent and the low yield was 3 250 percent Noncompetitive tenders totaled 8 million Competitive tenders accepted from private investors totaled 12 992 million Accrued interest of per 1 000 must be paid for the period from May 15 to July 15 The minimum par amount required for STRIPS of bonds of May 2044 is Week Bills On July Treasury announced it would auction 25 000 million of 364 day Treasury bills They were issued July 24 and will mature July The issue was to refund million of all maturing bills and to raise new cash of approximately 9 999 million Treasury auctioned the bills on July 22 Tenders totaled million Treasury accepted 25 001 million That included 122 million of noncompetitive tenders from the public The high bank discount rate was 0 110 percent Auction of 10 Year Treasury Inflation Protected Security TIPS On July Treasury announced it would auction 15 000 million of 10 year TIPS The issue was to refund 74 936 million of securities maturing July 31 and to raise new cash of approximately 48 064 million The 10 year TIPS of Series D 2024 were dated July 15 and issued July 31 They are due July with interest December 2014 payable on January 15 and July 15 until maturity Treasury set an interest rate of 0 1 8 percent after determining which tenders were accepted on a yield auction basis Treasury received tenders for the TIPS before 12 00 noon e t for noncompetitive tenders and before 1 00 p m e t for competitive tenders on July 24 Tenders totaled 37 351 million Treasury accepted 15 000 million All noncompetitive and successful competitive bidders were allotted securities at the high yield of 0 249 percent with an equivalent adjusted price of Treasury accepted in full all competitive tenders at yields lower than 0 249 percent Tenders at the high yield were allotted 60 46 percent The median yield was 0 210 percent and the low yield was 0 150 percent Noncompetitive tenders totaled 47 million Competitive tenders accepted from private investors totaled 14 953 million Adjusted accrued interest of per 1 000 must be paid for the period from July 15 to July 31 Both the unadjusted price of and the unadjusted accrued interest of were adjusted by an index ratio of for the period from July 15 to July 31 In addition to the 15 000 million of tenders accepted in the auction process Treasury accepted 5 million from Federal Reserve banks FRBs for their own accounts The minimum par amount required for STRIPS of TIPS of Series D 2024 is 100 Auction of 2 Year Notes On July Treasury announced it would auction 29 000 million of 2 year notes The issue was to refund 74 936 million of securities maturing July 31 and to raise new cash of approximately 48 064 million The 2 year notes of Series BC 2016 were dated and issued July 31 They are due July with interest payable on January 31 and July 31 until maturity Treasury set an interest rate of 0 1 2 percent after determining which tenders were accepted on a yield auction basis Treasury received tenders for the notes before 12 00 noon e t for noncompetitive tenders and before 1 00 p m e t for competitive tenders on July 28 Tenders totaled 93 384 million Treasury accepted 29 000 million All noncompetitive and successful competitive bidders were allotted securities at the high yield of 0 544 percent with an equivalent price of Treasury accepted in full all competitive tenders at yields lower than 0 544 percent Tenders at the high yield were allotted 78 18 percent The median yield was 0 525 percent and the low yield was 0 489 percent Noncompetitive tenders totaled 169 million Competitive tenders accepted from private investors totaled 28 731 million In addition to the 29 000 million of tenders accepted in the auction process Treasury accepted 9 million from FRBs for their own accounts The minimum par amount required for STRIPS of notes of Series BC 2016 is 100 BUREAU OF THE FISCAL SERVICE OPERATIONS 43 TREASURY FINANCING JULY SEPTEMBER continued Auction of 5 Year Notes On July Treasury announced it would auction 35 000 million of 5 year notes The issue was to refund 74 936 million of securities maturing July 31 and to raise new cash of approximately 48 064 million The 5 year notes of Series AB 2019 were dated and issued July 31 They are due July with interest payable on January 31 and July 31 until maturity Treasury set an interest rate of 1 5 8 percent after determining which tenders were accepted on a yield auction basis Treasury received tenders for the notes before 12 00 noon e t for noncompetitive tenders and before 1 00 p m e t for competitive tenders on July 29 Tenders totaled 98 372 million Treasury accepted 35 000 million All noncompetitive and successful competitive bidders were allotted securities at the high yield of 1 720 percent with an equivalent price of Treasury accepted in full all competitive tenders at yields lower than 1 720 percent Tenders at the high yield were allotted 28 92 percent The median yield was 1 696 percent and the low yield was 1 609 percent Noncompetitive tenders totaled 50 million Competitive tenders accepted from private investors totaled 34 950 million In addition to the 35 000 million of tenders accepted in the auction process Treasury accepted 11 million from FRBs for their own accounts The minimum par amount required for STRIPS of notes of Series AB 2019 is 100 Auction of 2 Year Floating Rate Notes FRN On July Treasury announced it would auction 15 000 million of 2 year FRNs The issue was to refund 74 936 million of securities maturing July 31 and to raise new cash of approximately 48 064 million The 2 year FRNs of Series BD 2016 were dated and issued July 31 They are due July with interest payable on October 31 January 31 April 30 and July 31 until maturity Treasury set a spread of 0 070 percent after determining which tenders were accepted on a discount margin basis Treasury received tenders for the FRNs before 11 00 a m e t for noncompetitive tenders and before 11 30 a m e t for competitive tenders on July 30 Tenders totaled 61 387 million Treasury accepted 15 000 million All noncompetitive and successful competitive bidders were allotted securities at the high discount margin of 0 070 percent with an equivalent price of Treasury accepted in full all competitive tenders at discount margins lower than 0 070 percent Tenders at the high discount margin were allotted 95 61 percent The median discount margin was 0 069 percent and the low discount margin was 0 060 percent Noncompetitive tenders totaled 28 million Competitive tenders accepted from private investors totaled 14 972 million Auction of 7 Year Notes On July Treasury announced it would auction 29 000 million of 7 year notes The issue was to refund 74 936 million of securities maturing July 31 and to raise new cash of approximately 48 064 million The 7 year notes of Series N 2021 were dated and issued July 31 They are due July with interest payable on January 31 and July 31 until maturity Treasury set an interest rate of 2 1 4 percent after determining which tenders were accepted on a yield auction basis Treasury received tenders for the notes before 12 00 noon e t for noncompetitive tenders and before 1 00 p m e t for competitive tenders on July 30 Tenders totaled 74 846 million Treasury accepted 29 000 million All noncompetitive and successful competitive bidders were allotted securities at the high yield of 2 250 percent with an equivalent price of Treasury accepted in full all competitive tenders at yields lower than 2 250 percent Tenders at the high yield were allotted 1 49 percent The median yield was 2 205 percent and the low yield was 2 130 percent Noncompetitive tenders totaled 17 million Competitive tenders accepted from private investors totaled 28 983 million In addition to the 29 000 million of tenders accepted in the auction process Treasury accepted 9 million from FRBs for their own accounts The minimum par amount required for STRIPS of notes of Series N 2021 is 100 AUGUST August Quarterly Financing On August Treasury announced it would auction 27 000 million of 3 year notes million of 10 year notes and 16 000 million of 30 year bonds to refund 57 700 million of securities maturing August 15 and to raise new cash of approximately 9 300 million The 3 year notes of Series AQ 2017 were dated and issued August 15 They are due August with interest payable on February 15 and August 15 until maturity Treasury set an interest rate of 0 7 8 percent after determining which tenders were accepted on a yield auction basis Treasury received tenders for the notes before 12 00 noon e t for noncompetitive tenders and before 1 00 p m e t for competitive tenders on August 12 Tenders totaled 81 942 million Treasury accepted 27 000 million All noncompetitive and successful competitive bidders were allotted securities at the high yield of 0 924 percent with an equivalent price of Treasury accepted in full all competitive tenders at yields lower than 0 924 percent December 2014 BUREAU OF THE FISCAL SERVICE OPERATIONS 44 TREASURY FINANCING JULY SEPTEMBER continued Tenders at the high yield were allotted 58 93 percent The median yield was 0 900 percent and the low yield was 0 833 percent Noncompetitive tenders totaled 54 million Competitive tenders accepted from private investors totaled 26 846 million The minimum par amount required for STRIPS of notes of Series AQ 2017 is 100 The 10 year notes of Series E 2024 were dated and issued August 15 They are due August with interest payable on February 15 and August 15 until maturity Treasury set an interest rate of 2 3 8 percent after determining which tenders were accepted on a yield auction basis Treasury received tenders for the notes before 12 00 noon e t for noncompetitive tenders and before 1 00 p m e t for competitive tenders on August 13 Tenders totaled 68 007 million Treasury accepted 24 000 million All noncompetitive and successful competitive bidders were allotted securities at the high yield of 2 439 percent with an equivalent price of Treasury accepted in full all competitive tenders at yields lower than 2 439 percent Tenders at the high yield were allotted 66 39 percent The median yield was 2 400 percent and the low yield was 2 337 percent Noncompetitive tenders totaled 53 million Competitive tenders accepted from private investors totaled 23 947 million The minimum par amount required for STRIPS of notes of Series E 2024 is 100 The 30 year bonds of August 2044 were dated and issued August 15 They are due August with interest payable on February 15 and August 15 until maturity Treasury set an interest rate of 3 1 8 percent after determining which tenders were accepted on a yield auction basis Treasury received tenders for the bonds before 12 00 noon e t for noncompetitive tenders and before 1 00 p m e t for competitive tenders on August 14 Tenders totaled 41 636 million Treasury accepted 16 000 million All noncompetitive and successful competitive bidders were allotted securities at the high yield of 3 224 percent with an equivalent price of Treasury accepted in full all competitive tenders at yields lower than 3 224 percent Tenders at the high yield were allotted 91 15 percent The median yield was 3 209 percent and the low yield was 3 130 percent Noncompetitive tenders totaled 24 million Competitive tenders accepted from private investors totaled 15 976 million The minimum par amount required for STRIPS of bonds of August 2044 is Week Bills On August Treasury announced it would auction 25 000 million of 364 day Treasury bills They were issued August 21 and will mature August The issue was to refund million of all maturing bills and to raise new cash of approximately 14 001 million Treasury auctioned the bills on August 19 Tenders totaled million Treasury accepted 25 001 million That included 154 December 2014 million of noncompetitive tenders from the public The high bank discount rate was 0 105 percent Auction of 4 Year 8 Month 0 1 8 Percent TIPS On August Treasury announced it would auction 16 000 million of 4 year 8 month 0 1 8 percent TIPS The issue was to raise new cash of approximately 29 000 million The 4 year 8 month TIPS of Series X 2019 were dated April 15 and issued August 29 They are due April with interest payable on October 15 and April 15 until maturity Treasury received tenders for the TIPS before 12 00 noon e t for noncompetitive tenders and before 1 00 p m e t for competitive tenders on August 21 Tenders totaled 39 687 million Treasury accepted 16 000 million All noncompetitive and successful competitive bidders were allotted securities at the high yield of 0 281 percent with an equivalent adjusted price of Treasury accepted in full all competitive tenders at yields lower than 0 281 percent Tenders at the high yield were allotted 52 23 percent The median yield was 0 329 percent and the low yield was 0 400 percent Noncompetitive tenders totaled 25 million Competitive tenders accepted from private investors totaled 15 975 million Adjusted accrued interest of per 1 000 must be paid for the period from April 15 to August 29 Both the unadjusted price of and the unadjusted accrued interest of were adjusted by an index ratio of for the period from April 15 to August 29 The minimum par amount required for STRIPS of TIPS of Series X 2019 is 100 Auction of 1 Year 11 Month 0 070 Percent FRN On August Treasury announced it would auction 13 000 million of 1 year 11 month 0 070 percent FRNs The issue was to raise new cash of approximately 29 000 million The 1 year 11 month FRNs of Series BD 2016 were dated July 31 and issued August 29 They are due July with interest payable on October 31 January 31 April 30 and July 31 until maturity Treasury received tenders for the FRNs before 11 00 a m e t for noncompetitive tenders and before 11 30 a m e t for competitive tenders on August 27 Tenders totaled 57 001 million Treasury accepted 13 000 million All noncompetitive and successful competitive bidders were allotted securities at the high discount margin of 0 055 percent with an equivalent price of Treasury accepted in full all competitive tenders at discount margins lower than 0 055 percent Tenders at the high discount margin were allotted 9 84 percent The median discount margin was 0 052 percent and the low discount margin was 0 040 percent Noncompetitive tenders totaled 17 million Competitive tenders accepted from private investors totaled BUREAU OF THE FISCAL SERVICE OPERATIONS 45 TREASURY FINANCING JULY SEPTEMBER continued million Accrued interest of per 100 must be paid for the period from July 31 to August 29 SEPTEMBER Cash Management Bills On August Treasury announced it would auction 15 000 million of 11 day bills They were issued September 4 and matured September 15 The issue was to raise new cash Treasury auctioned the bills on September 3 Tenders totaled 68 040 million Treasury accepted 15 000 million The high bank discount rate was 0 025 percent Auction of 2 Year Notes On August Treasury announced it would auction 29 000 million of 2 year notes The issue was to refund 75 167 million of securities maturing August 31 and to raise new cash of approximately 17 833 million The 2 year notes of Series BE 2016 were dated August 31 and issued September 2 They are due August with interest payable on the last calendar days of February and August until maturity Treasury set an interest rate of 0 1 2 percent after determining which tenders were accepted on a yield auction basis Treasury received tenders for the notes before 12 00 noon e t for noncompetitive tenders and before 1 00 p m e t for competitive tenders on August 26 Tenders totaled million Treasury accepted 29 000 million All noncompetitive and successful competitive bidders were allotted securities at the high yield of 0 530 percent with an equivalent price of Treasury accepted in full all competitive tenders at yields lower than 0 530 percent Tenders at the high yield were allotted 1 48 percent The median yield was 0 507 percent and the low yield was 0 477 percent Noncompetitive tenders totaled 179 million Competitive tenders accepted from private investors totaled 28 721 million Accrued interest of per 1 000 must be paid for the period from August 31 to September 2 In addition to the 29 000 million of tenders accepted in the auction process Treasury accepted 1 million from FRBs for their own accounts The minimum par amount required for STRIPS of notes of Series BE 2016 is 100 Auction of 5 Year Notes On August Treasury announced it would auction 35 000 million of 5 year notes The issue was to refund 75 167 million of securities maturing August 31 and to raise new cash of approximately 17 833 million The 5 year notes of Series AC 2019 were dated August 31 and issued September 2 They are due August with interest payable on the last calendar days of February and August until maturity Treasury set an interest rate of 1 5 8 percent after determining which tenders were accepted on a yield auction basis Treasury received tenders for the notes before 12 00 noon e t for noncompetitive tenders and before 1 00 p m e t for competitive tenders on August 27 Tenders totaled 98 471 million Treasury accepted 35 000 million All noncompetitive and successful competitive bidders were allotted securities at the high yield of 1 646 percent with an equivalent price of Treasury accepted in full all competitive tenders at yields lower than 1 646 percent Tenders at the high yield were allotted 13 63 percent The median yield was 1 611 percent and the low yield was 1 530 percent Noncompetitive tenders totaled 42 million Competitive tenders accepted from private investors totaled 34 908 million Accrued interest of per 1 000 must be paid for the period from August 31 to September 2 In addition to the 35 000 million of tenders accepted in the auction process Treasury accepted 2 million from FRBs for their own accounts The minimum par amount required for STRIPS of notes of Series AC 2019 is 100 Auction of 7 Year Notes On August Treasury announced it would auction 29 000 million of 7 year notes The issue was to refund 75 167 million of securities maturing August 31 and to raise new cash of approximately 17 833 million The 7 year notes of Series P 2021 were dated August 31 and issued September 2 They are due August with interest payable on the last calendar days of February and August until maturity Treasury set an interest rate of 2 percent after determining which tenders were accepted on a yield auction basis Treasury received tenders for the notes before 12 00 noon e t for noncompetitive tenders and before 1 00 p m e t for competitive tenders on August 28 Tenders totaled 74 540 million Treasury accepted 29 000 million All noncompetitive and successful competitive bidders were allotted securities at the high yield of 2 045 percent with an equivalent price of Treasury accepted in full all competitive tenders at yields lower than 2 045 percent Tenders at the high yield were allotted 0 36 percent The median yield was 2 000 percent and the low yield was 1 950 percent Noncompetitive tenders totaled 26 million Competitive tenders accepted from private investors totaled 28 974 million Accrued interest of per 1 000 must be paid for the period from August 31 to September 2 In addition to the 29 000 million of tenders accepted in the auction process Treasury accepted 1 million from FRBs for their own accounts The minimum par amount required for STRIPS of notes of Series P 2021 is 100 December 2014 BUREAU OF THE FISCAL SERVICE OPERATIONS 46 TREASURY FINANCING JULY SEPTEMBER continued Auction of 3 Year Notes Auction of 29 Year 11 Month 3 1 8 Percent Bonds On September Treasury announced it would auction 27 000 million of 3 year notes The issue was to refund 32 000 million of securities maturing September 15 and to raise new cash of approximately 29 000 million The 3 year notes of Series AR 2017 were dated and issued September 15 They are due September with interest payable on March 15 and September 15 until maturity Treasury set an interest rate of 1 percent after determining which tenders were accepted on a yield auction basis Treasury received tenders for the notes before 12 00 noon e t for noncompetitive tenders and before 1 00 p m e t for competitive tenders on September 9 Tenders totaled 85 626 million Treasury accepted 27 000 million All noncompetitive and successful competitive bidders were allotted securities at the high yield of 1 066 percent with an equivalent price of Treasury accepted in full all competitive tenders at yields lower than 1 066 percent Tenders at the high yield were allotted 20 66 percent The median yield was 1 035 percent and the low yield was 0 950 percent Noncompetitive tenders totaled 66 million Competitive tenders accepted from private investors totaled 26 834 million The minimum par amount required for STRIPS of notes of Series AR 2017 is 100 On September Treasury announced it would auction 13 000 million of 29 year 11 month 3 1 8 percent bonds The issue was to refund 32 000 million of securities maturing September 15 and to raise new cash of approximately 29 000 million The 29 year 11 month bonds of August 2044 were dated August 15 and issued September 15 They are due August with interest payable on February 15 and August 15 until maturity Treasury received tenders for the bonds before 12 00 noon e t for noncompetitive tenders and before 1 00 p m e t for competitive tenders on September 11 Tenders totaled 34 669 million Treasury accepted 13 000 million All noncompetitive and successful competitive bidders were allotted securities at the high yield of 3 240 percent with an equivalent price of Treasury accepted in full all competitive tenders at yields lower than 3 240 percent Tenders at the high yield were allotted 99 42 percent The median yield was 3 222 percent and the low yield was 3 150 percent Noncompetitive tenders totaled 8 million Competitive tenders accepted from private investors totaled 12 992 million Accrued interest of per 1 000 must be paid for the period from August 15 to September 15 The minimum par amount required for STRIPS of bonds of August 2044 is 100 Auction of 9 Year 11 Month 2 3 8 Percent Notes On September Treasury announced it would auction 21 000 million of 9 year 11 month 2 3 8 percent notes The issue was to refund 32 000 million of securities maturing September 15 and to raise new cash of approximately 29 000 million The 9 year 11 month notes of Series E 2024 were dated August 15 and issued September 15 They are due August with interest payable on February 15 and August 15 until maturity Treasury received tenders for the notes before 12 00 noon e t for noncompetitive tenders and before 1 00 p m e t for competitive tenders on September 10 Tenders totaled 56 810 million Treasury accepted 21 000 million All noncompetitive and successful competitive bidders were allotted securities at the high yield of 2 535 percent with an equivalent price of Treasury accepted in full all competitive tenders at yields lower than 2 535 percent Tenders at the high yield were allotted 26 18 percent The median yield was 2 491 percent and the low yield was 2 430 percent Noncompetitive tenders totaled 15 million Competitive tenders accepted from private investors totaled 20 985 million Accrued interest of per 1 000 must be paid for the period from August 15 to September 15 The minimum par amount required for STRIPS of notes of Series E 2024 is 100 December Week Bills On September Treasury announced it would auction 25 000 million of 364 day Treasury bills They were issued September 18 and will mature September The issue was to refund million of all maturing bills and to pay down approximately 18 001 million Treasury auctioned the bills on September 16 Tenders totaled million Treasury accepted 25 000 million That included 139 million of noncompetitive tenders from the public The high bank discount rate was 0 120 percent Auction of 1 Year 10 Month 0 070 Percent FRN On September Treasury announced it would auction 13 000 million of 1 year 10 month 0 070 percent FRNs The issue was to raise new cash of approximately 13 000 million The 1 year 10 month FRNs of Series BD 2016 were dated July 31 and issued September 26 They are due July with interest payable on October 31 January 31 April 30 and July 31 until maturity Treasury received tenders for the FRNs before 11 00 a m e t for noncompetitive tenders and before 11 30 a m e t for competitive tenders on September 24 Tenders totaled 57 899 million Treasury accepted 13 000 million All noncompetitive and successful competitive bidders were BUREAU OF THE FISCAL SERVICE OPERATIONS 47 TREASURY FINANCING JULY SEPTEMBER continued allotted securities at the high discount margin of 0 041 percent with an equivalent price of Treasury accepted in full all competitive tenders at discount margins lower than 0 041 percent Tenders at the high discount margin were allotted 94 76 percent The median discount margin was 0 039 percent and the low discount margin was 0 035 percent Noncompetitive tenders totaled 20 million Competitive tenders accepted from private investors totaled 12 981 million Accrued interest of per 100 must be paid for the period from July 31 to September 26 Auction of 9 Year 10 Month 0 1 8 Percent TIPS On September Treasury announced it would auction 13 000 million of 9 year 10 month 0 1 8 percent TIPS The issue was to refund 75 708 million of securities maturing September 30 and to raise new cash of approximately 30 292 million The 9 year 10 month TIPS of Series D 2024 were dated July 15 and issued September 30 They are due July with interest payable on January 15 and July 15 until maturity Treasury received tenders for the TIPS before 12 00 noon e t for noncompetitive tenders and before 1 00 p m e t for competitive tenders on September 18 Tenders totaled 28 661 million Treasury accepted 13 000 million All noncompetitive and successful competitive bidders were allotted securities at the high yield of 0 610 percent with an equivalent adjusted price of Treasury accepted in full all competitive tenders at yields lower than 0 610 percent Tenders at the high yield were allotted 32 05 percent The median yield was 0 540 percent and the low yield was 0 460 percent Noncompetitive tenders totaled 24 million Competitive tenders accepted from private investors totaled 12 976 million Adjusted accrued interest of per 1 000 must be paid for the period from July 15 to September 30 Both the unadjusted price of and the unadjusted accrued interest of were adjusted by an index ratio of for the period from July 15 to September 30 The minimum par amount required for STRIPS of TIPS of Series D 2024 is 100 Treasury received tenders for the notes before 12 00 noon e t for noncompetitive tenders and before 1 00 p m e t for competitive tenders on September 23 Tenders totaled million Treasury accepted 29 000 million All noncompetitive and successful competitive bidders were allotted securities at the high yield of 0 589 percent with an equivalent price of Treasury accepted in full all competitive tenders at yields lower than 0 589 percent Tenders at the high yield were allotted 28 59 percent The median yield was 0 570 percent and the low yield was 0 520 percent Noncompetitive tenders totaled 151 million Competitive tenders accepted from private investors totaled 28 749 million The minimum par amount required for STRIPS of notes of Series BF 2016 is 100 Auction of 5 Year Notes On September Treasury announced it would auction 35 000 million of 5 year notes The issue was to refund 75 708 million of securities maturing September 30 and to raise new cash of approximately 30 292 million The 5 year notes of Series AD 2019 were dated and issued September 30 They are due September with interest payable on March 31 and September 30 until maturity Treasury set an interest rate of 1 3 4 percent after determining which tenders were accepted on a yield auction basis Treasury received tenders for the notes before 12 00 noon e t for noncompetitive tenders and before 1 00 p m e t for competitive tenders on September 24 Tenders totaled 89 558 million Treasury accepted 35 000 million All noncompetitive and successful competitive bidders were allotted securities at the high yield of 1 800 percent with an equivalent price of Treasury accepted in full all competitive tenders at yields lower than 1 800 percent Tenders at the high yield were allotted 65 80 percent The median yield was 1 763 percent and the low yield was 1 690 percent Noncompetitive tenders totaled 50 million Competitive tenders accepted from private investors totaled 34 900 million The minimum par amount required for STRIPS of notes of Series AD 2019 is 100 Auction of 2 Year Notes Auction of 7 Year Notes On September Treasury announced it would auction 29 000 million of 2 year notes The issue was to refund 75 708 million of securities maturing September 30 and to raise new cash of approximately 30 292 million The 2 year notes of Series BF 2016 were dated and issued September 30 They are due September with interest payable on March 31 and September 30 until maturity Treasury set an interest rate of 0 1 2 percent after determining which tenders were accepted on a yield auction basis On September Treasury announced it would auction 29 000 million of 7 year notes The issue was to refund 75 708 million of securities maturing September 30 and to raise new cash of approximately 30 292 million The 7 year notes of Series Q 2021 were dated and issued September 30 They are due September with interest payable on March 31 and September 30 until maturity Treasury set an interest rate of 2 1 8 percent after determining which tenders were accepted on a yield auction basis December 2014 BUREAU OF THE FISCAL SERVICE OPERATIONS 48 TREASURY FINANCING JULY SEPTEMBER continued Treasury received tenders for the notes before 12 00 noon e t for noncompetitive tenders and before 1 00 p m e t for competitive tenders on September 25 Tenders totaled 71 859 million Treasury accepted 29 000 million All noncompetitive and successful competitive bidders were allotted securities at the high yield of 2 235 percent with an equivalent price of Treasury accepted in full all December 2014 competitive tenders at yields lower than 2 235 percent Tenders at the high yield were allotted 61 20 percent The median yield was 2 197 percent and the low yield was 2 117 percent Noncompetitive tenders totaled 19 million Competitive tenders accepted from private investors totaled 28 981 million The minimum par amount required for STRIPS of notes of Series Q 2021 is 100 BUREAU OF THE FISCAL SERVICE OPERATIONS 49 TABLE PDO 1 Offerings of Regular Weekly Treasury Bills In millions of dollars Source Bureau of the Fiscal Service Division of Financing Operations On total competitive bids accepted Issue date Description of new issue Amount Number of bids of days to Maturity date tendered maturity Amounts of bids accepted On On nonTotal competitive competitive basis amount 2 basis High price per hundred 7 High discount rate percent 8 High investment rate percent Regular weekly 4 week 13 week and 26 week 2014 July July July July July Aug Aug Aug Aug Sept Sept Sept Sept July 31 Oct Jan Aug 07 Oct Jan Aug 14 Oct Jan Aug 21 Oct Jan Aug 28 Oct Jan Sept 04 Nov Feb Sept 11 Nov Feb Sept 18 Nov Feb Sept 25 Nov Feb Oct 02 Dec Mar Oct 09 Dec Mar Oct 16 Dec Mar Oct 23 Dec Mar All 4 week and 13 week bills represent additional issues of bills with an original maturity of 26 weeks or 52 weeks Certain 26 week bills represent additional issues of bills with an original maturity of 52 weeks 2 Includes amount awarded to the Federal Reserve System Tenders for 5 million or less from any one bidder are accepted in full at the high price of accepted competitive bids All Treasury Marketable auctions are conducted in a single price format as of November Equivalent coupon issue yield December 2014 BUREAU OF THE FISCAL SERVICE OPERATIONS 50 TABLE PDO 2 Offerings of Marketable Securities Other than Regular Weekly Treasury Bills In millions of dollars Source Bureau of the Fiscal Service Division of Financing Operations Description of securities note AP note C 9y 10m bond y 10m bill TIPS D Amount tendered 4 3y Auction date Amount accepted Period to final maturity years months days 2 3 Issue date 1 Accepted yield discount margin and equivalent price for notes and bonds y note BC 2y note AB 5y FRN BD 2y note N 7y note AQ 3y note E 10y bond y bill TIPS X 4y note BE 2y 364d 364d m FRN BD 1y note AC 5y note P 7y bill note AR 3y note E 9y bond bill m m y 11m TIPS D 9y 10m note BF 2y FRN BD 1y note AD 5y note Q 7y 1 11d 364d Currently all issues are sold at auction For bill issues the rate shown is the high bank discount rate For note and bond issues the rate shown is the interest rate For details of bill offerings see table PDO 1 As of October all Treasury issues of notes and bonds are eligible for STRIPS 2 From date of additional issue in case of a reopening 3 In reopenings the amount accepted is in addition to the amount of original offerings December m Includes securities issued to the Federal Reserve System and to foreign and international monetary authorities whether in exchange for maturing securities or for new cash Note Amounts listed as tendered and accepted are amounts tendered and awarded on auction day 51 INTRODUCTION Ownership of Federal Securities Federal securities presented in the following tables are public debt securities such as savings bonds bills notes and bonds that the Treasury issues The tables also detail debt issued by other Federal agencies under special financing authorities See the Federal debt FD tables for a more complete description of the Federal debt Effective January Treasury s Bureau of the Fiscal Service revised formats titles and column headings in the Monthly Statement of the Public Debt of the United States Table I Summary of Treasury Securities Outstanding and Table II Statutory Debt Limit These changes should reduce confusion and bring the publication more in line with the public s use of terms Treasury s Bureau of the Fiscal Service compiles data in the Treasury Bulletin table OFS 1 from the Monthly Statement of the Public Debt of the United States Effective June 2001 Bureau of the Fiscal Service revised procedures and categories in this table to agree with the Bureau of the Fiscal Service s publication changes Table OFS 1 presents Treasury marketable and nonmarketable securities and debt issued by other Federal agencies held by Government accounts the FRBs and private investors Social Security and Federal retirement trust fund investments comprise much of the Government account holdings The FRBs acquire Treasury securities in the market as a means of executing monetary policy Table OFS 2 presents the estimated ownership of U S Treasury securities Information is primarily obtained from the Federal Reserve Board of Governors Flow of Funds data Table L209 State local and foreign holdings include special issues of nonmarketable securities to municipal entities and foreign official accounts They also include municipal foreign official and private holdings of marketable Treasury securities See footnotes to the table for description of investor categories December 2014 OWNERSHIP OF FEDERAL SECURITIES 52 TABLE OFS 1 Distribution of Federal Securities by Class of Investors and Type of Issues In millions of dollars Source Bureau of the Fiscal Service Total Federal securities outstanding 1 Total outstanding Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept End of fiscal year or month Public debt securities Held by U S Government accounts Marketable 4 Nonmarketable 5 Public issues held by Federal Reserve banks Total 3 Public debt securities continued Agency securities 1 Held by private investors End of fiscal year or month Total outstanding 10 Held by Government accounts 12 Total 7 Marketable Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Table has been revised to show separate amounts for Agency Securities to include Held by Private Investors and Held by Government Accounts December 2014 Nonmarketable 9 Held by private investors Note Public issues held by the Federal Reserve banks have been revised to include Ginnie Mae and exclude the following Government Sponsored Enterprises Federal National Mortgage Association Federal Home Loan Mortgage Corporation and the Federal Home Loan Bank System OWNERSHIP OF FEDERAL SECURITIES 53 TABLE OFS 2 Estimated Ownership of U S Treasury Securities In billions of dollars Source Office of Debt Management Office of the Under Secretary for Domestic Finance Pension funds 3 End of month Total public debt Sept June Mar Dec Sept June Mar Dec Sept June Mar Dec Sept June Mar Dec Sept June Mar Dec Sept June Mar Dec Sept June Mar Dec Sept June Mar Dec Sept June Mar Dec Sept June Mar Dec Sept June Mar SOMA and Intragovernmental Holdings Total U S privately Depository savings held institutions 4 5 bonds n a Private Source Monthly Statement of the Public Debt of the United States MSPD Face value 2 Sources Federal Reserve Bulletin Table 1 18 Federal Reserve banks statement of condition for System Open Market Accounts and the U S Treasury MSPD for intragovernmental holdings Federal Reserve holdings exclude Treasury securities held under repurchase agreements 3 As of February 2005 the debt held by Government Accounts was renamed to Intragovernmental holdings 4 Source Federal Reserve Board of Governors Flow of Funds Table L 209 5 Includes U S chartered depository institutions foreign banking offices in U S banks in U S affiliated areas credit unions and bank holding companies 6 Sources Monthly Statement of the Public Debt of the United States from January 1996 Federal Reserve Board of Governors Flow of Funds Table L 209 from January 1977 through December 1995 Current accrual value n a State and Insurance compalocal nies 4 governments 8 7 n a n a n a Mutual funds n a State and Foreign local govern and interments 4 national n a n a Other investors 10 12 n a n a Includes U S Treasury securities held by the Federal Employees Retirement System Thrift Savings Plan G Fund Includes money market mutual funds mutual funds and closed end investment companies 9 Source Federal Reserve Board Treasury International Capital Survey Includes nonmarketable foreign series Treasury securities and Treasury deposit funds Excludes Treasury securities held under repurchase agreements in custody accounts at the Federal Reserve Bank of New York For additional information see http www treasury gov resource center data chart center tic pages index aspx 10 Includes individuals Government sponsored enterprises brokers and dealers bank personal trusts and estates corporate and non corporate businesses and other investors 8 December INTRODUCTION U S Currency and Coin Outstanding and in Circulation The U S Currency and Coin Outstanding and in Circulation USCC statement informs the public of the total face value of currency and coin used as a medium of exchange that is in circulation at the end of a given accounting month The statement defines the total amount of currency and coin outstanding and the portion deemed to be in circulation It includes some old and current rare issues that do not circulate or that may do so to a limited extent Treasury includes them in the statement because the issues were originally intended for general circulation The USCC statement provides a description of the various issues of paper money It also gives an estimated average of currency and coin held by each individual using estimates of population from the Bureau of the Census USCC information has been published by Treasury since 1888 and was published separately until 1983 when it was incorporated into the Treasury Bulletin The USCC comes from monthly reports compiled by Treasury offices U S Mint offices the Federal Reserve banks FRBs and the Federal Reserve Board TABLE USCC 1 Amounts Outstanding and in Circulation Sept Source Bureau of the Fiscal Service Currency Amounts outstanding Total currency and coin 1 Total currency 2 Federal Reserve notes 1 3 Currency no longer issued 5 U S notes The Treasury FRBs Amounts in circulation Less amounts held by Total 1 Dollars Fractional coins The Treasury FRBs Amounts in circulation Coins 2 Amounts outstanding Less amounts held by See footnotes following table USCC 2 December 2014 U S CURRENCY AND COIN OUTSTANDING AND IN CIRCULATION 55 TABLE USCC 2 Amounts Outstanding and in Circulation Sept Source Bureau of the Fiscal Service Currency in circulation by denomination U S notes 3 Currency no longer issued Total Federal Reserve notes Fractional notes Total currency Amounts in millions 1 Per capita 6 2 Sept Aug Comparative totals of currency and coins in circulation selected dates July Sept Sept Sept Sept Sept Sept June June June June June Issued on or after July Excludes coins sold to collectors at premium prices 3 Includes in standard silver dollars 6 Represents current FRB adjustment Represents value of certain partial denominations not presented for redemption Based on Bureau of the Census estimates of population December 2014 Foreign Currency Positions Exchange Stabilization Fund 59 INTRODUCTION Foreign Currency Positions The Treasury Bulletin reports foreign currency holdings of large foreign exchange market participants These reports provide information on positions in derivative instruments such as foreign exchange futures and options that are increasingly used in establishing foreign exchange positions but were not covered in the old reports The information is based on reports of large foreign exchange market participants on holdings of five major foreign currencies Canadian dollar Japanese yen Swiss franc pound sterling and euro and the U S dollar Positions in the U S dollar which have been collected since January 1999 are intended to approximate all other currency positions of reporting institutions U S based businesses file a consolidated report for their domestic and foreign subsidiaries branches and agencies U S subsidiaries of foreign entities file only for themselves not for their foreign parents Filing is required by law 31 United States Code Code of Federal Regulations 128 Subpart C Weekly and monthly reports must be filed throughout the calendar year by major foreign exchange market participants which are defined as market participants with more than 50 billion equivalent in foreign exchange contracts on the last business day of any calendar quarter during the previous year end March September September or December Such contracts include the amounts of foreign exchange spot contracts bought and sold foreign exchange forward contracts bought and sold foreign exchange futures bought and sold and one half the notional amount of foreign exchange options bought and sold A quarterly report must be filed throughout the calendar year by each foreign exchange market participant that had more than 5 billion equivalent in foreign exchange contracts on the last business day of any quarter the previous year end March September September or December This information is published in six sections corresponding to each of the major currencies covered by the reports Tables I 1 through VI 1 present the currency data reported weekly by major market participants Tables I 2 through VI 2 present more detailed currency data of major market participants based on monthly reports Tables I 3 through VI 3 present quarterly consolidated currency data reported by large market participants that do not file weekly reports The information in the tables referenced above is based on the reports referenced in this Introduction Foreign Currency Positions and is not audited by the Federal Reserve banks or the Treasury Department Principal exchanged under cross currency interest rate swaps is reported as part of purchases or sales of foreign exchange Such principal also was noted separately on monthly and quarterly reports through December 1998 when this practice was discontinued The net options position or the net delta equivalent value of an options position is an estimate of the relationship between an option s value and an equivalent currency hedge The delta equivalent value is defined as the product of the first partial derivative of an option valuation formula with respect to the price of the underlying currency multiplied by the notional principal of the contract December 2014 FOREIGN CURRENCY POSITIONS 60 SECTION I Canadian Dollar Positions TABLE FCP I 1 Weekly Report of Major Market Participants In millions of Canadian dollars Source Treasury Foreign Currency Reporting Report date Spot forward and future contracts Purchased Sold Net options positions 3 Exchange rate Canadian dollars per U S dollar n a n a n a n a n a n a n a n a n a n a n a n a n a n a n a n a n a n a n a n a n a December 2014 FOREIGN CURRENCY POSITIONS 61 SECTION I Canadian Dollar Positions continued TABLE FCP I 2 Monthly Report of Major Market Participants In millions of Canadian dollars Source Treasury Foreign Currency Reporting Report date Foreign currency denominated Liabilities Assets Spot forward and future contracts Purchased Sold Options positions Puts Calls Bought Written Bought Written Exchange rate Canadian Net delta dollars per equivalent U S dollar Dec Dec Oct Nov Dec Jan Feb n a n a Mar n a Apr n a May n a June n a July Aug n a Sept n a TABLE FCP I 3 Quarterly Report of Large Market Participants In millions of Canadian dollars Source Treasury Foreign Currency Reporting Spot forward and future contracts Report date Purchased 1 Foreign currency denominated Sold 2 Assets 3 Liabilities 4 Options positions Puts Calls Bought 5 Written 6 Bought 7 Written 8 Net delta equivalent 9 Exchange rate Canadian dollars per U S dollar Dec n a n a n a Mar n a June n a n a Sept n a n a n a Dec n a n a n a Mar n a June n a Sept n a n a Dec n a Mar n a n a n a June December 2014 FOREIGN CURRENCY POSITIONS 62 SECTION II Japanese Yen Positions TABLE FCP II 1 Weekly Report of Major Market Participants In billions of Japanese yen Source Treasury Foreign Currency Reporting Purchased 1 Sold 2 Net options positions 3 Exchange rate Japanese yen per U S dollar Spot forward and future contracts Report date December 2014 FOREIGN CURRENCY POSITIONS 63 SECTION II Japanese Yen Positions continued TABLE FCP II 2 Monthly Report of Major Market Participants In billions of Japanese yen Source Treasury Foreign Currency Reporting Spot forward and future contracts Report date Purchased 1 Sold 2 Foreign currency denominated Assets 3 Options positions Puts Calls Liabilities 4 Bought 5 Written 6 Bought 7 Written 8 Net delta equivalent 9 Exchange rate Japanese yen per U S dollar Dec n a Dec Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept TABLE FCP II 3 Quarterly Report of Large Market Participants In billions of Japanese yen Source Treasury Foreign Currency Reporting Report date Spot forward and future contracts Purchased Sold Foreign currency denominated Assets Liabilities Calls Bought 5 Options positions Puts Written Bought Written Net delta equivalent 9 Exchange rate Japanese yen per U S dollar Dec n a Mar June Sept n a Dec Mar n a June Sept n a Dec n a Mar n a n a June n a December 2014 FOREIGN CURRENCY POSITIONS 64 SECTION III Swiss Franc Positions TABLE FCP III 1 Weekly Report of Major Market Participants In millions of Swiss francs Source Treasury Foreign Currency Reporting Report date Spot forward and future contracts Purchased Sold Net options positions 3 Exchange rate Swiss francs per U S dollar n a n a n a n a December 2014 FOREIGN CURRENCY POSITIONS 65 SECTION III Swiss Franc Positions continued TABLE FCP III 2 Monthly Report of Major Market Participants In millions of Swiss francs Source Treasury Foreign Currency Reporting Report date Foreign currency denominated Assets Liabilities Bought 5 Options positions Puts Written Bought Written Spot forward and future contracts Purchased Sold Calls Exchange rate Net delta Swiss francs per equivalent U S dollar Dec Dec Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept n a TABLE FCP III 3 Quarterly Report of Large Market Participants In millions of Swiss francs Source Treasury Foreign Currency Reporting Report date Spot forward and future contracts Purchased Sold Foreign currency denominated Liabilities Assets Calls Bought 5 Options positions Puts Written Bought Written Net delta equivalent 9 Exchange rate Swiss francs per U S dollar Dec n a n a n a n a n a Mar n a n a June n a n a Sept n a n a n a Dec n a n a n a n a n a n a Mar n a n a June n a n a Sept n a n a n a n a Dec n a n a n a n a n a Mar n a n a June n a n a n a December 2014 FOREIGN CURRENCY POSITIONS 66 SECTION IV Sterling Positions TABLE FCP IV 1 Weekly Report of Major Market Participants In millions of pounds sterling Source Treasury Foreign Currency Reporting Report date Spot forward and future contracts Purchased Sold Net options positions 3 Exchange rate U S dollars per pound n a n a n a n a n a n a n a n a n a n a n a n a n a n a n a n a n a December 2014 FOREIGN CURRENCY POSITIONS 67 SECTION IV Sterling Positions continued TABLE FCP IV 2 Monthly Report of Major Market Participants In millions of pounds sterling Source Treasury Foreign Currency Reporting Report date Spot forward and future contracts Purchased Sold Foreign currency denominated Assets Liabilities Bought 5 Options positions Puts Written Bought Written Calls Net delta equivalent 9 Exchange rate U S dollars per pound Dec n a Dec n a Oct n a Nov n a Dec Jan Feb n a Mar Apr n a May n a June n a July Aug n a Sept TABLE FCP IV 3 Quarterly Report of Large Market Participants In millions of pounds sterling Source Treasury Foreign Currency Reporting Report date 2011 Dec Spot forward and future contracts Purchased Sold Foreign currency denominated Assets Liabilities Calls Bought 5 Options positions Puts Written Bought Written n a n a n a 657 Net delta equivalent 9 Exchange rate U S dollars per pound Mar June Sept n a n a Dec n a n a n a n a n a Mar June Sept n a Dec n a Mar n a n a n a June December 2014 FOREIGN CURRENCY POSITIONS 68 SECTION V U S Dollar Positions TABLE FCP V 1 Weekly Report of Major Market Participants In millions of U S dollars Source Treasury Foreign Currency Reporting Report date Spot forward and future contracts Sold Purchased Net options positions 3 Exchange rate n a n a n a n a n a n a n a n a n a n a n a n a n a n a n a n a n a n a n a n a n a n a n a n a n a n a December 2014 FOREIGN CURRENCY POSITIONS 69 SECTION V U S Dollar Positions continued TABLE FCP V 2 Monthly Report of Major Market Participants In millions of U S dollars Source Treasury Foreign Currency Reporting Report date Spot forward and future contracts Purchased Sold Foreign currency denominated Assets Liabilities Calls Bought 5 Written 6 Options positions Puts Bought Written Net delta equivalent 9 Exchange rate Dec n a Dec n a Oct n a Nov n a Dec n a Jan n a Feb n a n a Mar n a Apr n a May n a June n a July n a Aug n a Sept n a TABLE FCP V 3 Quarterly Report of Large Market Participants In millions of U S dollars Source Treasury Foreign Currency Reporting Report date 2011 Dec Spot forward and future contracts Purchased Sold Foreign currency denominated Liabilities Assets Calls Bought 5 Written 6 Options positions Puts Written Bought Net delta equivalent 9 Exchange rate n a Mar n a June n a n a Sept n a n a Dec n a n a Mar n a n a June n a Sept n a n a Dec n a Mar n a June n a December 2014 FOREIGN CURRENCY POSITIONS 70 SECTION VI Euro Positions TABLE FCP VI 1 Weekly Report of Major Market Participants In millions of euros Source Treasury Foreign Currency Reporting Report date Spot forward and future contracts Purchased Sold Net options positions 3 Exchange rate Euros per U S dollar n a n a n a n a n a n a n a n a n a n a n a December 2014 FOREIGN CURRENCY POSITIONS 71 SECTION VI Euro Positions continued TABLE FCP VI 2 Monthly Report of Major Market Participants In millions of euros Source Treasury Foreign Currency Reporting Report date Spot forward and future contracts Purchased Sold Foreign currency denominated Assets Liabilities Bought 5 Written 6 Calls Options positions Puts Bought Written Net delta equivalent 9 Exchange rate Dec Dec Oct n a Nov Dec Jan n a Feb n a Mar n a Apr n a May June n a July Aug n a Sept TABLE FCP VI 3 Quarterly Report of Large Market Participants In millions of euros Source Treasury Foreign Currency Reporting Report date Spot forward and future contracts Purchased Sold Foreign currency denominated Assets Liabilities Calls Bought 5 Options positions Puts Written Bought Written Net delta equivalent 9 Exchange rate Dec Mar June n a Sept Dec n a Mar n a June Sept Dec Mar n a n a June December INTRODUCTION Exchange Stabilization Fund To stabilize the exchange value of the dollar the Exchange Stabilization Fund ESF was established pursuant to chapter 6 section 10 of the Gold Reserve Act of January codified at 31 United States Code 5302 which authorized establishment of a Treasury fund to be operated under the exclusive control of the Secretary with approval of the President Subsequent amendment of the Gold Reserve Act modified the original purpose somewhat to reflect termination of the fixed exchange rate system Resources of the fund include dollar balances partially invested in U S Government securities special drawing rights SDRs and balances of foreign currencies Principal sources of income or loss for the fund are profits or losses on SDRs and foreign exchange as well as interest earned on assets Table ESF 1 presents the assets liabilities and capital of the fund The figures are in U S dollars or their equivalents based on current exchange rates computed according to the accrual method of accounting The capital account represents the original capital appropriated to the fund by Congress of 2 billion minus a subsequent transfer of 1 8 billion to pay for the initial U S quota subscription to the International Monetary Fund Gains and losses are reflected in the cumulative net income or loss account Table ESF 2 shows the results of operations by quarter Figures are in U S dollars or their equivalents computed according to the accrual method Profit or loss on foreign exchange includes realized profits or losses Adjustment for change in valuation of SDR holdings and allocations reflects net gain or loss on revaluation of SDR holdings and allocations for the quarter TABLE ESF 1 Balances as of June and Sept In thousands of dollars Source Office of the Assistant Secretary of the Treasury for Management Assets liabilities and capital June July through Sept Sept Assets U S dollars Held with Treasury Fund Balance U S Government securities Government Sponsored Enterprises GSE Securities Special drawing rights Foreign exchange and securities European euro Japanese yen Accounts receivable Total assets Liabilities and capital Current liabilities Accounts payable Total current liabilities Other liabilities SDR certificates SDR allocations Unearned revenue Total other liabilities Capital Capital account Net income or loss see Table ESF Total capital Total liabilities and capital See footnote on the following page December 2014 EXCHANGE STABILIZATION FUND 73 TABLE ESF 2 Income and Expense In thousands of dollars Source Office of the Assistant Secretary of the Treasury for Management Current quarter July through Sept Fiscal year to date Oct through Sept Income and expense Profit or loss on Foreign exchange Adjustment for change in valuation of SDR holdings and allocations SDRs U S Government securities GSE Securities Foreign exchange Insurance premiums Commissions Income from operations Net income or loss Interest or net charges on 1 Beginning July 1974 the International Monetary Fund adopted a technique for valuing the SDRs based on a weighted average of exchange rates for the currencies of selected member countries The U S SDR holdings and allocations are valued on this basis beginning July 1974 Note Annual balance sheets for fiscal years 1934 through 1940 appeared in the 1940 Annual Report of the Secretary of the Treasury and those for succeeding years appeared in subsequent reports through 1980 Quarterly balance sheets beginning with December have been published in the Treasury Bulletin Data from inception to September may be found on the statements published in the January 1979 Treasury Bulletin December 2014 Trust Funds TRUST FUNDS 77 TABLE TF 6A Highway Trust Fund The following information is released according to the provisions of the Byrd Amendment codified at 26 United States Code 9503 d and represents data concerning the Highway Trust Fund The figure described as unfunded authorizations is the latest estimate received from the DOT The 48 month revenue estimates for the highway and mass transit accounts respectively include the latest estimates received from Treasury s Office of Tax Analysis for excise taxes net of refunds They represent net highway receipts for those periods Highway Account In billions of dollars Source DOT Commitments unobligated balances plus unpaid obligations fiscal year less Cash balance fiscal year Unfunded authorizations fiscal year month revenue estimate fiscal years and Mass Transit Account In billions of dollars Source DOT Commitments unobligated balances plus unpaid obligations fiscal year less Cash balance fiscal year Unfunded authorizations fiscal year month revenue estimate fiscal years and Note Detail may not add due to rounding Note Estimates based on the Fiscal Year 2015 Mid Session Review include Intergovernmental Transfers Authorized by P L December Research Paper Series Available through the Office of the Assistant Secretary for Economic Policy Historical Trends in the U S Cost of Capital Robert Gillingham and John S Greenlees December The Effect of Marginal Tax Rates on Capital Gains Revenue Another Look at the Evidence Robert Gillingham and John S Greenlees December An Econometric Model of Capital Gains Realization Behavior Robert Gillingham John S Greenlees and Kimberly D Zieschang August The Impact of Government Deficits on Personal and National Saving Rates Revised Michael R Darby Robert Gillingham and John S Greenlees February Social Security and the Public Debt James E Duggan October Issues in Eastern European Social Security Reform John C Hambor June Life Health Insurance Markets John S Greenlees and James E Duggan July Property Casualty Insurance Markets Lucy Huffman and David Bernstein August The Bank Reported Data in the U S Balance of Payments Basic Features and an Assessment of their Reliability Michael Cayton February The Returns Paid to Early Social Security Cohorts James E Duggan Robert Gillingham and John S Greenlees April Distributional Effects of Social Security The Notch Issue Revisited James E Duggan Robert Gillingham and John S Greenlees Revised April Progressive Returns to Social Security An Answer from Social Security Records James E Duggan Robert Gillingham and John S Greenlees November Housing Bias in the CPI and Its Effects on the Budget Deficit and Social Security Trust Fund James E Duggan Robert Gillingham and John S Greenlees January An Improved Method for Estimating the Total Taxable Resources of the States Michael Compson and John Navratil December Some Regulatory and Institutional Barriers to Congestion Pricing at Airports Edward Murphy and John D Worth May Actuarial Nonequivalence in Early and Delayed Social Security Benefit Claims James E Duggan and Christopher J Soares June 2001 December 2014 RESEARCH PAPER SERIES Annuity Risk Volatility and Inflation Exposure in Payments from Immediate Life Annuities Christopher J Soares and Mark Warshawsky January Possible Alternatives to the Medicare Trustees Long Term Projections of Health Spending Jason D Brown and Ralph M Monaco January The Long Term Real Interest Rate for Social Security James A Girola March Implications of Returns on Treasury Inflation Indexed Securities for Projections of the Long Term Real Interest Rate James A Girola March Mortality and Lifetime Income Evidence from Social Security Records James E Duggan Robert Gillingham and John S Greenlees December The Impact of Post 9 11 Visa Policies on Travel to the United States Brent Neiman and Phillip L Swagel June Prefunding Social Security Benefits to Achieve Intergenerational Fairness Can It Be Done in the Social Security Trust Fund Randall P Mariger December Do Social Security Surpluses Pay Down Publicly Held Debt Evidence from Budget Data Randall P Mariger December 2008 Copies may be obtained by writing to Ann Bailey Department of the Treasury 1500 Pennsylvania Ave NW Room 4409 MT Washington DC 20220 Telephone or fax December Glossary With References to Applicable Sections and Tables Source Bureau of the Fiscal Service Amounts outstanding and in circulation USCC Includes all issues by the Bureau of the Mint purposely intended as a medium of exchange Coins sold by the Bureau of the Mint at premium prices are excluded however uncirculated coin sets sold at face value plus handling charge are included Average discount rate PDO In Treasury bill auctions purchasers tender competitive bids on a discount rate basis The average discount rate is the weighted or adjusted average of all bids accepted in the auction Budget authority Federal Fiscal Operations Congress passes laws giving budget authority to Government entities which gives the agencies the power to spend Federal funds Congress can stipulate various criteria for the spending of these funds For example Congress can stipulate that a given agency must spend within a specific year number of years or any time in the future The basic forms of budget authority are appropriations authority to borrow contract authority and authority to obligate and expend offsetting receipts and collections The period of time during which Congress makes funds available may be specified as 1 year multiple year or no year The available amount may be classified as either definite or indefinite a specific amount or an unspecified amount can be made available Authority also may be classified as current or permanent Permanent authority requires no current action by Congress Budget deficit The total cumulative amount by which budget outlays spending exceed budget receipts income Cash management bills PDO 1 Marketable Treasury bills of irregular maturity lengths sold periodically to fund short term cash needs of Treasury Their sale having higher minimum and multiple purchase requirements than those of other issues is generally restricted to competitive bidders Competitive tenders Treasury Financing Operations A bid to purchase a stated amount of one issue of Treasury securities at a specified yield or discount The bid is accepted if it is within the range accepted in the auction See Noncompetitive tenders Currency no longer issued USCC Old and new series gold and silver certificates Federal Reserve notes national bank notes and 1890 Series Treasury notes Debt outstanding subject to limitation FD 6 The debt incurred by the Treasury subject to the statutory limit set by Congress Until World War I a specific amount of debt was December 2014 authorized to each separate security issue Beginning with the Second Liberty Loan Act of 1917 the nature of the limitation was modified until in 1941 it developed into an overall limit on the outstanding Federal debt Pursuant to 31 U S C 3101 b By the Temporary Debt Limit Extension Act Public Law 113 83 the Statutory Debt Limit has been suspended and shall not apply for the period beginning February and ending March Discount The interest deducted in advance when purchasing notes or bonds See Accrued discount Discount rate PDO 1 The difference between par value and the actual purchase price paid annualized over a 360 day year Because this rate is less than the actual yield couponequivalent rate the yield should be used in any comparison with coupon issue securities Dollar coins USCC Include standard silver and nonsilver coins Domestic series FD 2 Nonmarketable interest and noninterest bearing securities issued periodically by Treasury to the Resolution Funding Corporation RFC for investment of funds authorized under section 21B of the Federal Home Loan Bank Act 12 United States Code 1441b Federal intrafund transactions Federal Fiscal Operations Intrabudgetary transactions in which payments and receipts both occur within the same Federal fund group Federal funds or trust funds Federal Reserve notes USCC Issues by the U S Government to the public through the Federal Reserve banks and their member banks They represent money owed by the Government to the public Currently the item Federal Reserve notes amounts outstanding consists of new series issues The Federal Reserve note is the only class of currency currently issued Foreign targeted issue PDO 2 Foreign targeted issues were notes sold between October 1984 and February 1986 to foreign institutions foreign branches of U S institutions foreign central banks or monetary authorities or to international organizations in which the United States held membership Sold as companion issues they could be converted to domestic normal Treasury notes with the same maturity and interest rates Interest was paid annually Fractional coins USCC Coins minted in denominations of 50 25 and 10 cents and minor coins 5 cents and 1 cent GLOSSARY Government account series FD 2 Certain trust fund statutes require the Secretary of the Treasury to apply monies held by these funds toward the issuance of nonmarketable special securities These securities are sold directly by Treasury to a specific Government agency trust fund or account Their rate is based on an average of market yields on outstanding Treasury obligations and they may be redeemed at the option of the holder Roughly 80 percent of these are issued to five holders the Federal Old Age and Survivors Insurance Trust Fund the civil service retirement and disability fund the Federal Hospital Insurance Trust Fund the military retirement fund and the Unemployment Trust Fund Interfund transactions Federal Fiscal Operations Transactions in which payments are made from one fund group either Federal funds or trust funds to a receipt account in another group International Monetary Fund transactions Exchange Stabilization Fund ESF 1 IMF Established by the United Nations the IMF promotes international trade stability of exchange and monetary cooperation Members are allowed to draw from the fund Intrabudgetary transactions Federal Fiscal Operations These occur when payment and receipt both occur within the budget or when payment is made from off budget Federal entities whose budget authority and outlays are excluded from the budget totals Noncompetitive tenders Treasury Financing Operations This is a tender or bid to purchase a stated par amount of securities at the highest yield or discount rate awarded to competitive bidders for a single price auction Obligations Federal Fiscal Operations An unpaid commitment to acquire goods or services Off budget Federal entities Federal Fiscal Operations Federally owned and controlled entities whose transactions are excluded from the budget totals under provisions of law Their receipts outlays and surplus or deficit are not included in budget receipts outlays or deficits Their budget authority is not included in totals of the budget Outlays Federal Fiscal Operations Payments on obligations in the form of cash checks the issuance of bonds or notes or the maturing of interest coupons Par value The face value of bonds or notes including interest Quarterly financing Treasury Financing Operations Treasury has historically offered packages of several coupon security issues on the 15th of February May August and November or on the next working day These issues currently consist of a 3 year note a 10 year note and a 30 year bond Treasury sometimes offers additional amounts of outstanding long term notes or bonds rather than selling new security issues See Reopening 81 Receipts Federal Fiscal Operations Funds collected from selling land capital or services as well as collections from the public budget receipts such as taxes fines duties and fees Reopening PDO 2 The offer for sale of additional amounts of outstanding issues rather than an entirely new issue A reopened issue will always have the same maturity date CUSIP number and interest rate as the original issue Special drawing rights Exchange Stabilization Fund ESF 1 International assets created by IMF that serve to increase international liquidity and provide additional international reserves SDRs may be purchased and sold among eligible holders through IMF See IMF SDR allocations are the counterpart to SDRs issued by IMF based on members quotas in IMF Although shown in Exchange Stabilization Fund ESF statements as liabilities they must be redeemed by ESF only in the event of liquidation of or U S withdrawal from the SDR department of IMF or cancellation of SDRs SDR certificates are issued to the Federal Reserve System against SDRs when SDRs are legalized as money Proceeds of monetization are deposited into an ESF account at the Federal Reserve Bank of New York Spot Foreign Currency Positions Due for receipt or delivery within 2 workdays State and local government series SLGS FD 2 Special nonmarketable certificates notes and bonds offered to State and local governments as a means to invest proceeds from their own tax exempt financing Interest rates and maturities comply with IRS arbitrage provisions SLGS are offered in both time deposit and demand deposit forms Time deposit certificates have maturities of up to 1 year Notes mature in 1 to 10 years and bonds mature in more than 10 years Demand deposit securities are 1 day certificates rolled over with a rate adjustment daily Statutory debt limit FD 6 By Act of Congress there is a limit either temporary or permanent on the amount of public debt that may be outstanding When this limit is reached Treasury may not sell new debt issues until Congress increases or extends the limit For a detailed listing of changes in the limit since 1941 see the Budget of the United States Government See debt outstanding subject to limitation STRIPS PDO 2 Separate Trading of Registered Interest and Principal Securities Long term notes and bonds may be divided into principal and interest paying components which may be transferred and sold in amounts as small as 1 000 STRIPS are sold at auction at a minimum par amount varying for each issue The amount is an arithmetic function of the issue s interest rate December GLOSSARY Treasury bills The shortest term Federal security maturity dates normally varying from 3 to 12 months are sold at a discount Trust fund transaction Federal Fiscal Operations An intrabudgetary transaction in which both payments and receipts occur within the same trust fund group December2014 United States Includes the 50 States District of Columbia Commonwealth of Puerto Rico American Samoa Midway Island Virgin Islands Wake Island and all other territories and possessions U S notes USCC Legal tender notes of five different issues notes notes notes notes and notes PUBLICATION AND SUBSCRIPTION ORDER FORM Order Processing Code 3509 Easy Secure Internet bookstore gpo gov Publications Qty Stock Number Toll Free DC Area Fax Publication Title PO Box 979050 St Louis MO Price Total Price Total for Publications Subscription Qty Mail U S Government Printing Office List ID TRBU Title Price Total Price Treasury Bulletin Total for Publications Prices include regular domestic postage and handling and are subject to change International customers please add 40 Total Cost of Order Please return order form with payment Personal name Please type or print Check Method of Payment Company name Street address Check payable to Superintendent of Documents SOD Deposit Account City State Zip code Daytime phone including area code Fax or e mail Visa MasterCard Discover NOVUS American Express expiration date AUTHORIZING SIGNATURE Thank you for your interest in U S Government Information ALL SALES ARE FINAL Thank you for your order

December 2014

DATE: December 2014

PART OF:

Treasury Bulletin

AUTHOR:

United States. Department of the Treasury

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United States. Department of the Treasury. "December 2014," Treasury Bulletin (December 2014). https://fraser.stlouisfed.org/title/407/item/487465, accessed on December 12, 2019.

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